Posts By: Edward Niedermeyer

By on September 10, 2010

Ever since its interior took TTAC’s Best and Brightest by surprise, we’ve been keeping an eye on Kia’s K7 flagship sedan. Now Autospies has caught one cruising stateside, revealing a design that’s less edgy than some of the other Scheryer-era Kias, but that fits right into the American automotive landscape. And not the way its predecessor the Amanti did…

By on September 10, 2010


Yes, despite the ever-present dangers of distracted driving and demonically-possessed Toyotas, US highways are safer than ever [full PDF report here]. Overall deaths in 2009 were at their lowest levels since 1950, even as vehicle miles traveled increased. Highway fatalities have been falling for the past four years, and in 2009 even motorcycle fatalities decreased for the first time in 11 years. At 1.13 deaths per 100 million vehicle miles traveled in 2009, fatalities per VMT fell to another all-time low. Why? It could be the market-fueled arms race to stuff ever more standard safety equipment into cars, or incessant pressure on OEMs from the IIHS (and its ilk)… or, if you’re Transportation Secretary Ray LaHood, you might think that

the weak economy was a contributing factor as many Americans chose not to go out to bars and restaurants after work or on the weekend.

Yes, the man tasked with keeping our highway safe believes that his ongoing success is the product of Americans moping around the house because of a down economy. Even though VMT actually increased by .2 percent over 2008. In other words, despite “talking about safety more than anyone in Washington,” Ray LaHood is both clueless about the data, and convinced that a weak economy helps his crusade. Which makes you wonder what the man means when he says

While we’ve come a long way, we have a long distance yet to travel.

By on September 10, 2010

Gimmicky sales techniques are tough. On the one hand, Hyundai’s 10 year warranty and Assurance buy-back program have helped it become one of the fastest-growing auto brands in the country. On the other, Chrysler’s free gas giveaway, “lifetime guarantee” and its latest, the “regret-free purchase” offer, have all come and gone without materially moving the needle for the beleaguered automaker. In fact, cars.com reports that just 21 buyers opted for the option of returning their Chrysler within 60 days instead of a financing deal. Which makes sense: people buy Chryslers because they’re cheap and they offer lots of incentives. If we’re honest, the option of returning a car because it is of lower quality than the competition shouldn’t really appeal to deal-minded consumers. Which is why only Ram now offers the “regret-free” deal, while the rest of Chrysler, Jeep and Dodge’s nameplates have loaded back up on incentives. It’s clearly what brings the customers in.

By on September 10, 2010

If you exist outside the fast-paced world of the automotive branding community, you might believe that the point of car brands is to sell cars. Needless to say, you’d be wrong. The big buzzword around car brands, particularly the more niche and eco-friendly brands is “mobility.” As in “we must leverage our brand values to provide a broad-based mobility strategy for the cities of the future.” Or, to put it into layman’s terms, “screw cars, we gotta start building scooters.”

(Read More…)

By on September 9, 2010

By on September 9, 2010

To hype its forthcoming Leaf electric car, Nissan has reached for the most manipulative imagery in the green marketing playbook: the Polar Bear. They’re cute, they’re cuddly, and because their icy habitat is being destroyed by regular cars, they will hug you if you buy an EV. Meanwhile, the causes, trajectory, and impacts of global climate change (not to mention its possible solutions) remain extremely abstract and far-away when compared to the political and economic ramifications of global oil undersupply. Too bad market failures and geopolitical instability aren’t as emotionally manipulative as those fuzzy bear guys…

By on September 9, 2010

Digging through the finances of a company as large as GM is never an easy task, especially when the balance book in question was recently wiped clean in a bailout-bankruptcy. Luckily, Bloomberg columnist Jonathan Weil has the chops to do the task justice, and he’s come up with a fascinating insight: through the power of an accounting tool known as “Goodwill,” Weil claims that GM has juiced its assets and liabilities during its “fresh start.” He notes with TTACian zeal:

It’s as if a $30.2 billion asset suddenly materialized out of thin air. In the upside-down world that is GM’s balance sheet, that’s exactly what happened.

The short version: GM undervalued some assets and overvalued some liabilities during its “fresh start.” The scary result: improvement in GM’s performance and creditworthiness could actually lead to writedowns on its Goodwill… which is currently The General’s largest non-current asset. Oh yes, and without that $30.2b in Goodwill, GM would have about an equity value of -$6.3b. Welcome to the new General Motors…
(Read More…)

By on September 9, 2010

Bloomberg reports that Ford will not build its Kuga compact crossover at its Louisville, KY plant due to the falling Euro and UAW recalcitrance. According to the report

The promise of Kuga production in Louisville began to fall apart in November when UAW members rejected Ford’s request to match givebacks it gave General Motors Co. and Chrysler Group LLC. Ford’s U.S. rivals, which each reorganized in bankruptcy last year, were granted a six-year freeze on wages for new hires and a ban on some strikes until 2015… The euro has fallen 14 percent against the dollar since Ford reached a tentative deal with the UAW in October to build the Kuga in Louisville alongside its mechanical twin, the Escape. At the time, the dollar had declined against the euro, lowering the cost of U.S.-made goods. Since then, the euro has dropped amid concerns Europe’s debt crisis may trigger another recession.

Barclays analyst Brian Johnson explains

This is a reminder to the UAW that Ford’s U.S. cars don’t have to be produced in the U.S. Ford’s global architecture allows them to build anywhere. That’s good news if the U.S. has competitive labor costs. It’s bad news if they don’t

(Read More…)

By on September 9, 2010

The never-ending tension between the desire to give consumers more choices of in-car gizmos and the need to halt the advance of distracted driving took another confused twist this week, as Onstar announced that it is testing new features that could allow drivers to listen to text messages and update their Facebook status from behind the wheel. According to the DetN, the technology would read incoming text messages or a Facebook news feed to the driver, and could even allow the driver to update their own Facebook status verbally. Needless to say, GM and Onstar are hyping the updates as ways to keep up with Ford’s SYNC on the entertainment front, and because the features are all hands-free, they’re safe… right?
(Read More…)

By on September 9, 2010

Remember when Hyundai was famous for cheap, tiny hatchbacks instead of sculpted, Lexus-alike sedans? Though Hyundai’s first hybrid will be based on its popular Sonata, its first-ever EV is based on its old-school i10 hatchback. The AP reports that the BlueOn (remember, blue is the new green) will be delivered to Korean government fleets this year, with sales to the public starting in 2012. Hyundai hasn’t disclosed whether the BlueOn’s pricetag will be as old-school Hyundai as the i10, but with only 87 miles of EV range and 80 MPH from 16.4 kWh of Lithium-polymer batteries, it looks like low-cost city transport is the name of the game. But with a planned production volume of 2,500 units per year, the BlueOn shows how far Hyundai still has to come before catching up with the Nissans and Mitsubishis of the EV world. Then again, Hyundai’s come from behind before…

By on September 9, 2010

In the interests of truth, we feel compelled to point out that this is not, in fact, the 2011 Jaguar XJ. But considering the damn thing had hardly changed in 35 years, it’s easy to understand why the Detroit News thought it could get away with just slinging up a photo of the previous year’s model. And though that may have worked for the better part of the last four decades, now that Jag has a truly new XJ, it’s just cruel. Or sloppy. Either way, it’s plenty ironic.

By on September 8, 2010

The first rule of blog relations: don’t let the blogs know that you have a blog relations program. The second rule of blog relations: bloggers are children. Use reverse psychology. BMW did… and look, it just worked! Anyway, if meta-irony isn’t your thing, feel free to to never mind the bollocks and simply speculate about this forthcoming BMW concept. Giant wheels, a tiny exhaust… what could those wacky Bavarians be up to?

By on September 8, 2010

GOTD’s brief mental health break is over, with our breakdown of sales in the biggest car segment in America: Midsize family sedans. The big news is that no model (save the Chevy Malibu and Hyundai Sonata) outdid its August ’09 number, thanks to the Cash For Clunkers effect a year ago. The other big lesson: things are getting tight at the top of the D Segment food chain. Based on these numbers, the capacity-constrained Sonata seems to be separating from the pack, leaving a big clump of nameplates stuck near the 18k mark. Based on the last several months, Hyundai could be one Sonata volume bump away from having the best-selling midsize sedan in America… just when it was beginning to seem like the Camccords would never be challenged. More chart action after the jump.

(Read More…)

By on September 8, 2010
I think there’s a decent business case if you take the long view
Chrysler Dealer Don Lee gives Automotive News [sub] his take on Chrysler’s pitch to new Fiat/Alfa dealers, thereby confirming that few dealers expect a Fiat franchise to take off in the short term. And for those “decent” long-term prospects, Chrysler’s saying that
a showroom of 2,500 to 3,000 square feet would be sufficient to start… To get there, some dealers are going to have to take it slower. They’ll have to offer a separate showroom but go beyond that as more product becomes available.
So, what will the 500 do for dealers? According to the Pentastar gang, dealers can expect
healthy gross profits of up to $1,500 on each Fiat 500
Lee reckons that figure is “optimistic,” but we disagree. Chrysler has said that 500s will start around $20k, and they’ll have to considering any US-bound 500 that comes out of Chrysler’s Toluca, Mexico plant could be sold for near double that price in Brazil. Per-car profit margins on US-market 500s will be strong… it’s the 50k projected annual sales volume (78k by 2013) that prospective dealers need to worry about.
By on September 8, 2010

There are no rumors to report here, just a hypnotic video of Mazda working through its new Kodo design language on a compact hatchback concept. As with the Shinari concept, Mazda’s stated goal of becoming “the Japanese Alfa Romeo” is well-evidenced, and though it’s early days yet, the new direction looks promising. But then, anything that looks less like a stimulant-crazed Pokemon than the current Mazda3 would have counted as improvement.

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