The Detroit News reports that the Treasury Department has hired Lazard Frères & Co. as an advisor to GM’s forthcoming IPO sale. And with news of the hiring comes confirmation that GM’s IPO really is coming soon: the investment bank will receive half a million dollars, according to the DetN, but that amount will drop to $250,000 if the IPO isn’t completed within one year. If you’re one of the GM boosters who believes that an IPO will repay all or most of the government’s investment in GM, it’s time to start saving those pennies. You have less than a year now to put your money where your mouth has been.
The only “real car” on Forbes’ most overpriced list is the Chrysler 300. Really. Despite being based on the compact Cobalt, Chevy breaks sales of its HHR out as a “truck,” in search of improved CAFE performance. And despite an MSRP of under $20k, the PT Cruiser-inspired wagon was still one of Forbes’ most overpriced vehicles of 2010. The rest of the list’s 11 models are unquestionably trucks, or truck-based utes, and save for Nissan’s Titan and Armada, they’re also all from Detroit automakers as well. If you’re looking for more reasons to build a cheap, utilitarian compact pickup truck (ahem, General Motors) this list has got ’em. Hit the jump for Forbes’ list of most overpriced vehicles, and the magazine’s formula for deciding who makes the cut for this dubious distinction.
OK, so steel-wheeled, camo-clad test mules are never easy to identify. Especially when they are actually an all-new vehicle positioned at a segment that their brand isn’t exactly well-known for competing in. Here’s a hint: this vehicle illustrates exactly why entry-luxury brands like Buick are in so much trouble. We’re looking at a vehicle that will be sold in the US in a few years, sporting a well-known luxury badge. Can you guess the make and model? [Answer: It’s the next-generation Mercedes-Benz B-Class… and once again, there’s no fooling you guys!]
As yesterday’s sales graph proves, this is not the greatest time to be re-launching an entry-luxury brand. With Kias and Fords offering the kind of tech gadgets once found only in the upper echelons of true luxury brands, and with well-regarded import luxury marques moving into the front-drive, mass-market, the so-called “premium” brands are finding themselves caught in the middle and losing sales. But in spite of these damning dynamics, GM is moving to overhaul its entry-luxe Buick brand at top speed. Why? Because it can…
The first Kia Soul hamster ad was good, but this latest one takes the same humor and message and blows the lid off the concept. Between this and the recent Challenger ad, 2010 is shaping up to be a good year for car advertising.
As the Dodge brand redefines itself with new lifestyle packages, new ads, events and sponsorships, and a slew of upcoming new products, it’s using its brand name to send a clear message that its “forever young” attitude and performance-driven history will drive the brand into the future.
The new Dodge brand logo features the DODGE name with a pair of red racing stripes relative to the “E,” suggesting speed and agility. Dodge designers sketched the new logo after Dodge and Ram Truck were clearly defined as separate brands with their own identities and consumers, each needing a logo that represents the character of the brand.
The twin red graphic stripes will be used in communications, advertising, internet and merchandising. They will not appear on Dodge products or on the dealership signage.
To be perfectly honest, we weren’t familiar with the work of Weinsberg, Germany-based Xenatec group before hearing that the custom bodywork shop would be building a Maybach Coupe. Thanks to a tip from Auto Motor und Sport, we headed over to Xenatec’s website, and found that the firm offers a wide variety of custom bodywork ranging from the absurd to the sublime. Some of Xenatec’s customs, like the stretched Audi R8 shown above, show just how pointlessly nuts things can get when money is not a factor. Others, like the four-door BMW 6-Series and the Mercedes CLS Wagon actually represent pre-emptive swipes at forthcomingniche models. A four-door Porsche 911 even gives sufficiently well-heeled buyers the option of buying a “real” Porsche four-door as an alternative to the front-engine Panamera. You know the industry is passing through strange days when OEMs and tuning houses start meeting in the middle…
Around the world, drunk driving is a deadly problem without an easy solution. After all, the link between driving under the influence and generally screwing up your life (and the lives of others) has been conclusively proven, and yet the problem continues. What to do? Volvo’s answer: buy a Volvo and spend €850 (plus up to €90 for installation) on “Alcoguard,” a dealer-installed optional breathalyzer ignition interlock. With this system in place, drivers must blow into an interlock, proving that they are beneath the legal blood-alcohol-content limit before the vehicle will start.
Mercury isn’t the only entry-luxury brand in free-fall… it’s just the worst of a beat-up bunch. We’ve included Lincoln to help illustrate Ford’s larger luxury-brand issues, and Buick and Acura for competing-brand comparison.
The long-simmering dispute over hybrid technology patents between Toyota and the Florida engineering firm Paice is rolling on, as Bloomberg BusinessWeek reports that a judge from the U.S. International Trade Commission refused to dismiss the Paice suit. That suit builds on an earlier ruling requiring Toyota to pay Paice royalties on its Prius, Highlander Hybrid and RX400h sales (Toyota is challenging the amount of these royalties, ordered by a federal judge in Texas).
Strangely, this disclaimer isn’t even the funniest thing about the fresh-to-Youtube E-Class Cabriolet ad [available after the jump]. That prize goes to the way the otherwise undeniably handsome E-Cab looks with its “Aircap” system deployed. No wonder this previous ad stuck to long shots, and made light of the option’s contradictory and dispensable nature. Sure, folks in cold climates deserve convertibles too, but this Aircap thing just reminds me of cafe seating on Sunset Boulevard with heat lamps blaring on a 65-degree day. Silly wealthy folk… buy the coupe if you don’t like drafts. (Read More…)
Right now, the [Volt’s] propulsion system is too expensive, even with using an existing engine… We have a strategy to go rotary engines or a two-cylinder [gas] engine making 15-18 kW. I have driven the car already. Rotary has a higher fuel consumption but here’s the advantage [holds up his hands to form round, frisbee-sized shape] — packaging.
GM’s Karl Stracke talks Volt 2.0 with InsideLine, and yet never quite explains why a less fuel-efficient rotary generator would even be on the table. Or how a rotary (let alone the also-mooted diesel generator) would be the solution to high drivetrain costs. How much room does the (implicity and reputationally) more-efficient two-cylinder really take up? Wasn’t the only mass-market rotary-powered car left in the wild, the Mazda RX-8, just canceled for flunking European emissions standards? Can’t the rotary engine die with a little dignity?
Common decency demands that this flagrant of fanbaiting be reserved at least until the first-gen Volt hits the streets.
Bloomberg is reporting that anonymous sources tell them
[Ford’s] top executives are preparing a proposal to kill Mercury to be presented to directors in July
The rumor has yet to be confirmed, but the decision is clearly a sound one. We’ve written at length about Ford’s premium-brandproblems, and Mercury is easily one of the weakest brands on the market. With Lincoln said to be going global, it makes plenty of sense to kill off Mercury. In fact, axing the purposeless entry-luxe brand might just be one of the single smartest moves Ford could make right now.
UPDATE via Twitter’s @davidshephardson(also of the Detroit News): “Mulally says he didn’t read Bloomberg report on Mercury. Says Ford has ‘nothing new to announce.'”
The Detroit News reports that two versions of the Electric Drive Vehicle Deployment Act of 2010 will be introduced today in the House and Senate. Both bills would spend about $11b by sending $800 million to $1 billion five to eight “deployment communities.” One of the EDVDA’s bipartisan sponsors, Rep Judy Biggert (R-IL) explains that these funds
will help regional communities establish themselves as models for the development and installation of the next generation of transportation infrastructure, including public charging stations
The bill is being backed by several small EV firms, like A123 Systems and Bright Automotive, under the rubric of the Electrification Coalition. And despite the fact that everyone loves a good subsidy, the mainstream automakers are not amused.
According to a statement read in court, reprinted in the Toronto Star today: Bryant hits the brakes. His vehicle stalls. Bryant tries to start his car, but it stalls again, lurching forward … Bryant tries to start the car again. He’s concentrating on the Saab’s sensitive clutch with his head down. He succeeds at restarting the engine and the Saab accelerates into Sheppard, who lands on the hood.
Obviously, two incidents do not a crisis make, but this is hardly the only evidence suggesting that manual gear-swapping is fast becoming a lost art. But do we really want to further stigmatize manual transmissions by mandating special licenses for manual-equipped cars, as McIntosh suggests?
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