The rise of the internet has had myriad effects on everyday life, not the least of which has been its profound impact on consumer behavior. With ever more data being made available online, and with the rise of independent alternative media outlets like TTAC, car buyers in particular are fundamentally changing their relationship to the car buying process. Dealers have been noting for some time that the internet has created better-informed buyers who, armed with more information, are demanding the car they want at the best possible price, wreaking havoc on traditional car dealer tactics like upselling and opaque pricing policies.

But as the eternal dance between supply and demand shifts in favor of consumers, some dealers and OEMs are having a tough time adjusting to the new reality. At the same time, the need to make money off of online consumer education has created some tension for the new breed of consumer-oriented websites. This conflict has now broken out into the open, as the auto transaction data firm TrueCar has found itself locked in a battle with American Honda over the downward pricing pressure created by more widely accessible transaction data. And the outcome of this conflict could have profound impacts on the ever-changing face of the new car market.

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It’s always good to have friends with way crazier more ambitious vehicular projects than one’s own not-making-much-forward-progress Hell Projects. Rich, captain of the Rocket Surgery Racing mid-VW-engined Renault 4CV, has a snake pit cornucopia of such projects at his place, not far from Chez Murilee in Denver. Rich, last seen by TTAC readers helping me Nader-ize the brakes on my van, has big racing plans for 2012… and for that he needs a flatbed truck that can haul a race car and tow a camping trailer. Oh, and it also has to be a beautiful vintage machine, yet capable of prodigious load capacity. The original plan was to use the ’47 Ford pickup he bought at the amazing Seven Sons Auto Wrecking auction last winter, but then this fine vehicle danced into his field of vision. (Read More…)

I want you! To spend our national debt on a beater car!

145 vehicles. 100+ dealers. If there ever was a recipe for prices leaving the stratosphere and entering the ionosphere, it was Monday morning at Carmax.

On average Carmax makes $929 on every used car that they take in and sell to another dealer. If you take the latest quarterly profit they get from their wholesale auction operations alone ($78 million) and multiply it by four, you get over $300 million in earnings. That’s an amazing profit for what amounts to minimal reconditioning (if any) and a ‘quick flip’.

Then again, the car dealers who came to the sale were looking for the exact same thing.

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Ever since Steve Girsky an his “merry band of hatchet men” touched down in Rüsselsheim, Bertel has been warning that GM’s European division was about to embark on a serious cutting binge. But our worst fears, namely that Opel could go away entirely, have yet to be realized. Instead it seems that self-destructive mutilation will be attempted first, in order to stem the gushing red ink at Opel where at least €1b in losses are expected next year. Automotive News Europe [sub] reports that the first round of cuts will hit Opel’s Internationalen Technischen Entwicklungszentrum (ITEZ, “International Technical Development Center), as an IG Metall union document foresees some 1,420 product development position cuts (from a staff of some 6,000).

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Quick: Where is the largest plant in the Renault/Nissan empire? France? Japan? Tennessee? Nope. It’s in China. At least since today it is.

Today, Nissan’s joint venture with China’s Dongfeng officially opened phase II of its plant in Huadu, near Guangzhou, the former Canton. Across the street from the current plant, a new factory was erected that adds capacity of 200,000 units to the current 400,000 unit per year facilities. (Read More…)

When a truck or truckish vehicle gets close to the end of its usable lifespan, the last owner— if this vehicle happens to be in an urban area full of scroungy underemployed dudes with a 15:1 effects-pedal/guitar ratio— will often be a Band You Never Heard Of. When I was an affiliate of such a band in early-80s Oakland, we had a GMC Value Van with Chevy 396 power. The fate of such vehicles is always the same: a year or two of abuse, spilled beer on the carpets, and tire theft while parked in alleys behind dive bars… and then the head gasket blows or a control arm breaks and the tow-truck takes it for its final ride. (Read More…)

As long as a police officer cites his own safety as the reason, he may frisk any motorist during a traffic stop and remove objects from his pockets, according to a ruling handed down Tuesday by the US Court of Appeals for the Tenth Circuit. A three-judge panel evaluated whether Officer Joe Moreno was following the law when he searched driver Ivan Rochin after he was pulled over in Albuquerque, New Mexico for driving with an expired registration.

“No one likes being pulled over for a traffic violation,” Judge Neil M. Gorsuch wrote for the court. “Still, for most drivers the experience usually proves no more than an unwelcome (if often self-induced) detour from the daily routine. But not every traffic stop is so innocuous. Sometimes what begins innocently enough turns violent, often rapidly and unexpectedly. Every year, thousands of law enforcement officers are assaulted — and many are killed — in what seem at first to be routine stops for relatively minor traffic infractions.”

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T.J. writes:

Hey guys,

The day I knew was coming but hoped would never arrive is here.  I have to decide whether its time to replace my trusty ride, a 1996 Infiniti I30 with estimated 235k miles (odo was broken years ago, repaired, and reset to a mileage amount we now think is low.  actual miles is probably around 250-260k).  The issue is an oil leak.

It’s now leaking at the rate of about 5 quarts every 3000 miles.  I’ve been content to keep topping off the oil, but now the leak is causing other problems; specfically, the a/c and alternator belt will not stay on because the pulley is soaked in oil.  Fixing the leak would be over $1000, and this would the third or so leak that we’ve plugged, only to have another pop up, so I’m convinced that if I was to fix it, a new engine is the way to go.  I have an estimate from my mechanic (a very reasonable, trustworthy independent shop) for $2200 or so ($850 for a used local engine with 90k miles, $200 in other parts, and 13 hours labor).

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To be clear, we aren’t talking about the next brand to linger on long past its kill-by date, pitting the brand loyalty of its fans against common sense for an agonizing eternity. No, now that Saab is dead and its warranty coverage has been suspended [per Automotive News [sub]], Saabophiles need an alternative. TTAC commenter Pig_Iron writes:

Now that SAAB is gone, who is the new SAAB? By that I mean, who makes the best winter handling front driver in coupe, sedan and wagon avail with man trans?

Your pal,

Pig_Iron

My answer: Buick’s Regal. It’s a rebadged Opel, available in several states of turbo tune, it’s got a distinctively European feel inside (firm seats, dark cockpit), and a fine-handling front-drive chassis. What more could you want from a Saab? On the other hand, what Saabista is going to buy from GM now that The General has cruelly slain mercifully euthanized their beloved brand [PDF on the definitive causes of death here]? So, if GM is out… possibly some kind of Volvo? An Audi? What say you, Best And Brightest?

It’s been a fascinating year for the compact car, as all six of the segment’s leading competitors brought out new or updated models over the last 18 months. But as our Chart Of The Day shows, the competition has hardly sent the segment into overdrive, as after an early-year boom, compact car sales have slackened considerably. Intriguingly though, Honda and Toyota, which lost sales early this year due to supply interruptions in the wake of the Japanese Tsunami, seem to be the only brands with recovering compact sales. What’s especially interesting about this is the fact that Toyota’s modest refresh and Honda’s poorly-received new Civic were once widely considered by automotive pundits to be under threat from the resurgent competition. Indeed, Honda’s Civic has been especially hard-hit by media criticism, earning a harsh review from TTAC’s Michael Karesh, losing its coveted “recommended” rating from Consumer Reports, and engaging in some ugly media-bashing. But now that the Civic seems to be one of the only compacts to enjoy a late-year sales rebound, Honda’s announcing that it will be upgrading the Civic for the 2013 model-year, just one year after the new model was introduced.

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Ever since emerging from bankruptcy, the Chevrolet Cruze has been something of a symbol of GM’s rebound. Widely hailed by the automotive media as General Motors’ strongest effort to date in a compact segment that has become increasingly important in recent years, the Cruze seemed to show that the “new” GM was capable of selling smaller cars on their merits, rather than as afterthoughts to more profitable truck, SUV and large car offerings. And indeed, through the first half of this year, it seemed that the Cruze was something of a roaring success, regularly outselling its segment competitors. But then, in June, when production shifted from 2011 models to 2012 models, something changed: sales started to slow, and inventories started to rise. As Cruzes began piling up on dealer lots, GM trimmed production moderately, but still, inventories began to grow out of control. Clearly something was going wrong.

UPDATED: “Big Six” compact sedan monthly sales graph (Jan-Nov, 2011) added to gallery after the jump.

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TTAC Commentator Astigmatism writes:

Dear TTAC,

My wife wants to replace her 275,000-mile 1999 RX300.  Its sins, in order: fuel economy (15-17mpgs at this stage in ordinary driving); brakes that don’t inspire confidence (we’ve had the fronts completely replaced, and the rears and ABS checked multiple times, but it still pumps and grinds like crazy coming to a full stop); and the general feeling of looseness in a high-mileage SUV (not to mention rust spots, tears in the leather, etc., etc.).  She’s starting school in the fall, about 15 miles away through city traffic, and my hope was to have a replacement by then if possible. (Read More…)

We have been writing about it for years, now, Bloomberg wakes up to it:

“Volkswagen AG will kick off its biggest technology overhaul in almost two decades.”

Bloomberg still has a hard time of coming to grips with the technological revolution. It’s not just that “more than 40 models will use a set of standardized components such as axles, steering columns and chassis,” as Bloomberg puts it. This is not a parts bin exercise. Through the Volkswagen empire, cars don’t just share the same steering columns. They are designed using standardized building blocks of a common kit architecture. (Read More…)

Allegedly, GM wants to replace Opel and Vauxhall with Chevrolet in Europe, and turn the bow tie into a true global brand. Apparently, it wants to do this with a severely pruned-down dealer network. Chevy dealers in Germany watch every courier coming through the door with trepidation: Every fifth Chevy dealer in Germany will be handed a letter that tells him that his contract is being terminated, says Germany’s kfz-Betrieb.

As reason, insufficient sales are given. Uwe Heyman, a lawyer who manages the council of Opel and Chevrolet dealers in Germany, thinks the reason is likewise insufficient: (Read More…)

My two weeks in Europe has drawn to a close, and I’m back at my familiar desk, in front of my familiar computer, catching up on all the automotive happenings I missed, contemplating my transition out of TTAC’s day-to-day leadership, and reflecting on all I saw over my whirlwind two weeks. And though you haven’t heard from me much in the last two weeks, rest assured that I have  not forgotten TTAC, nor have I missed any opportunities to accumulate impressions from the automotive landscape of modern Europe.

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