Automotive News [sub] reports that the Acura RL is about to be canceled in the Japanese market, where it is sold as the Honda Legend. Considering that Acura’s range-topper sold only 872 units this year so far. For comparison, that’s less than even its weakest competitors like the Cadillac STS (2,145 units YTD)… only the Audi A8 (353 units YTD) sells worse in the full-size luxury sedan segment. According to the report, which originated in The Nikkei, Honda will also make its Civic a hybrid-only model in Japan, and will cancel its Elysion 8-passenger van. With Honda announcing its mid-term product plans next week, we’re sure to hear more about this shortly… in the meantime, would anyone miss the RL?
Posts By: Edward Niedermeyer
We didn’t make it down to the first meeting of the NHTSA-National Research Council panel tasked with studying unintended acceleration, but apparently we weren’t the only ones. A scan of the MSM confirms that a number of “more study is needed” stories were filed for the occasion, a good two weeks ago now, but we’ve been pointed towards the presentations for that meeting [available for download here, all 128 slides in PDF format here], and we feel comfortable drawing a few conclusions from them. In fact, we’d even argue that this data puts a lot of the controversy over unintended acceleration in Toyotas to rest.
Just in time for today’s tour of Michigan’s “battery belt,” the Obama Administration has released a study [full PDF here] of its electric vehicle stimulus efforts which concludes that the money was all well spent. Though the report covers a number of programs, from the ATVM “retooling loan” program which is backing companies like Nissan, Tesla and Fisker, to charging station subsidies, the major accomplishment of these billions of dollars is encapsulated in a single claim:
By 2012, thanks in part to the Recovery Act, 30 factories will be online and the U.S. will have the capacity to produce 20 percent of the world’s advanced vehicle batteries. By 2015, this share will be 40 percent.
As you can see from one of the report’s graphs (above) the US will achieve this 40 percent share of the world’s EV battery production just as two-thirds of the cost is beaten out of the things. And because batteries don’t follow Moore’s Law, it’s all diminishing returns from there. So what happens come 2015?
Carquestions noticed a troubling issue with the latest Wall Street Journal report on the investigation of Toyota’s black-box data: the report cites its anonymous source as saying that “black box” event data recorders (EDRs) can lose their data if disconnected from the battery. Carquestions points out that this is not the case, cites the appropriate regulations and concludes that it sounds like this source doesn’t know what he or she is talking about. Meanwhile, Jalopnik is running with the story that Toyota planted the story… but then, why would Toyota imply that its own black boxes don’t meet regulatory standards? Especially when Toyota’s official comment is that it has yet to draw any conclusions from the investigation. For a story with such a logical conclusion (yes, most people are bad drivers) this is all getting a bit complicated.
After ending the first quarter of this year with $35.7b in cash and equivalents, GM was in the best position it’s enjoyed in decades. And yet, with an IPO prospectus looming, The General is seeking a $5b line of credit and trotting out EBITDAPRO as its in-house measure of financial success. Both of these tactics are hallmarks of companies that are doing poorly, and GM has already learned how problematic loading up on debt and sliced-and-diced financials can be. So why is The General inviting criticism from outlets like Edmunds Autoobserver, which characterizes GM’s push towards an IPO as the rebirth of old bad habits? The simple answer: “business execution.” In other words, GM may have a lot of cash, but it’s got nearly as many demands on its resources as well… and these cash drains hardly add up to a coherent strategy.
Reuters reports that Honda has canceled plans to build a new minicar and diesel engine plant north of Tokyo, as the company focuses its product offerings ahead of worldwide emissions standards ramp-ups. Honda’s move away from diesel has been slowly building for years, and the strategy was all but confirmed by the cancellation of a US-market Acura TSX diesel, which was replaced by the V6 TSX. Instead of developing new oil-burners, Honda is focusing on a new hybrid drivetrain capable of powering its larger vehicles. Thus far Honda has kept a conservative approach to hybrids, refining its “mild hybrid” IMA system over several generations. As Honda seeks to improve its fleetwide emissions, this new system (which could be Honda’s first “full hybrid”) has taken on new importance. Honda will officially announce its medium-range plans next Tuesday… and don’t be surprised if it involves a new full hybrid system capable of going toe-to-toe with Toyota’s Synergy Drive.
Once upon a time, luxury cars were defined by giant drop-top land barges like Cadillac’s V-16 or the Bugatti Royale. Somewhere along the way, the luxury sedan-turned-convertible has fallen out of favor with the glaring exception of one of the world’s most expensive cars: the Rolls-Royce Phantom Drophead. But now, having pioneered the four-door coupe and (coming soon) the five-door coupe, Mercedes-Benz’s endless search for “new” segments has it looking backwards to the good old days of massive top-down touring luxury.
Ever since the Subaru brand was introduced to the US market as the makers of “cheap and ugly” little cars, it’s suffered from a tortured relationship with styling. From the unapologetically utilitarian to the downright contrived (hello, flying vagina) and right back to the tragically anodyne, Subaru’s styling has been as consistent as an acid trip… and about as popular with middle America. But now that Subaru is making headway with the buying public, its new stylist, Osamu Namba, tells Automotive News [sub] that it’s time for a change.
We want to broaden the appeal to make it accessible to more than a small, loyal crowd. We need to add a more contemporary element. We have to show the function through design with simple, clean lines. I want a very simple design that exhibits strength. I don’t want it to be just something serious and boring. A lot of people don’t know that Subaru brand. If we can make styling more accessible, it will bring them in
That sounds well and good, but where does Subaru even start going about building a consistent, coherent design language? We hear that Subaru’s Hybrid Tourer Concept is the best hint yet at the shape of things to come…
Much of the hysteria over a possible electronic cause for the Toyota unintended acceleration scandal (aka “the ghost in the machine”) stemmed from an ABC report featuring Southern Illinois University professor David Gilbert. Gilbert demonstrated to ABC’s Brian Ross that unintended acceleration could be triggered in Toyotas without generating an error code, but the report didn’t address the likelihood of this happening. Furthermore, ABC was found to have used misleading footage in that report. Gilbert went on to testify in one of the least convincing panels ever convened before congress, and even after Toyota held an event aimed solely at debunking his suspicions, Gilbert has persisted in believing that something is wrong with Toyota’s electronics. As a result, the AP [via CBC] reports that Toyota has pulled funding for two internships at SIU, two Toyota employees resigned from its automotive technology program advisory board, and another demanded that Gilbert be fired. The AP seems very keen to call these retaliations “smears,” but given recent revelations about the government investigation into Toyota’s electronic throttle control system, it seems that Gilbert and SIU are simply reaping what they’ve sown.

Bloomberg reports that GM has already pulled off one of the ballsiest IPO moves ever, by asking banks bidding to underwrite its IPO to use fees to subsidize the purchase of GM vehicles by its employees. According to the report, a GM document sent to bidding banks solicited
ideas as to how we can use the IPO to reposition GM and its vehicles within the investment community including your firm’s willingness to reinvest any portion of any underwriting fees into the purchase of GM vehicles for your employees and/or company use.
In hopes of convincing consumers that buying a battery-electric car will not be a financial disaster for them, GM is announcing an eight-year, 100k mile transferable warranty for its Volt battery. According to GM’s release, Volt batteries have undergone
more than 1 million miles and 4 million hours of validation testing of Volt battery packs since 2007, as well as each pack’s nine modules and 288 cells. The development, validation and test teams have met thousands of specifications and validated each of the Volt battery’s components.
Tests include short circuit, corrosion, dust, impact, water submersion, crush and penetration, and extreme temperature swings combined with aggressive drive cycles, also known as “Shake, Bake and Roll.”
GM does not, however, specify a minimum-performance range for the battery, saying only that it can run on battery power for “up to the first 40 miles.” That makes it tough to understand what kind of defect or level of performance would deserve a warranty repair or replacement, which is really the key consideration. GM’s claim that this
is the automotive industry’s longest, most comprehensive battery warranty for an electric vehicle
is technically true, but it is also the same warranty period enjoyed by Toyota’s Prius hybrid. Full release after the jump.

With analysts already worrying about Lithium-ion battery oversupply in Japan and the US, the Korean government is shaking up the sector even more by announcing an investment of 15 trillion won ($12.5b) in the country’s battery sector. Called “Battery 2020 Project,” the money will be spent on building up Korean R&D capabilities, with the goal of improving the country’s ability to source Li-ion components. Korea currently imports many of the components needed for its domestic battery industry, and according to Yonhap, this investment will seek to develop Korean sources for up to 75 percent of the battery industry’s components by 2020. A government official explains:
South Korea’s Samsung SDI and LG Chem already control 38 percent of the market, but actual percentage of local parts and technology used to make these products stand at less than 20 percent

Smart’s current plan for reviving its fading sales is a Tesla-powered EV version of its Smart ForTwo, which the Daimler-owned firm hopes will keep its city cars moving until a new platform is jointly developed with Renault. Further down the road though, it seems that Smart is moving to expand out of cars, as Autocar reports that the brand is developing a plug-in electric scooter. A senior Mercedes-Benz source tells the British magazine that
Smart was originally established to tackle the need for improved mobility, especially in congested city environments. Up to now we have concentrated our efforts on four-wheel solutions. The next stage is to looking at how to expand beyond this with other environmentally friendly vehicles
Automotive News [sub] says it’s been five years since GM ran a Corvette ad… and if the last ‘vette ad is the one I’m thinking of, Chevy had to pull it after safety advocates protested. Is it a coincidence that this new ad has GM comparing itself to that other federally-funded money pit, NASA? With both the automaker and the space agency fighting for their futures, the cross-branding works well, and it allows The General to indulge in some trademark nostalgia without digging too deep into its own past. All in all, it’s a quite effective ad… provided you don’t think about it too hard.







Recent Comments