We knew Brilliance’s plan to export 158,000 sedans to Europe had taken a bit of a beating when the Chinese automaker’s European export partner folded back in November. Even before then, the ADAC’s now-infamous crash tests of Briliance’s BS6 and BS4 seemed likely to doom the brand’s early attempt at the European market. And now, according to Reuters, it’s official. Brilliance execs admit:
We have stopped exports to Europe. For now, we have no timetable for resuming the business
Chrysler won’t officially confirm it, but the Detroit Free Press cites Chrysler dealers who say that the tarnished-to-death Sebring nameplate will be replaced with the name “Nassau,” when Chrysler brings out a Fiat-facelifted version of the midsized sedan later this year. The Nassau name first entered Mopar history with the 1955 Windsor Nassau, a a two-door coupe advertised as having “the 100 million dollar look.” After a mere two model years as the Windsor Coupe nameplate, the Nassau name lay dormant for decades before returning as a 2000 styling buck for the Chrysler 300, and again as a midsized sedan/wagon concept in 2007.
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The Treasury may be standing by GM’s “payback” claims, but the Congress hasn’t exactly been looking for ways to do the auto industry any favors. In fact, a toxic brew of political fallout from the financial crisis, auto bailout, and Toyota recall scandal has seems to have inspired a backlash against the industry that came to a head this week in the US Senate. Legislation has been introduced that would prevent NHTSA officials from taking jobs with automakers for up to three years after they leave the agency, and yet more is being drafted which could require a vast array of standard safety equipment on all cars sold in the US and could even add a federal fee to new car sales. Adding insult to injury, a much-hoped for exception to dealer financing oversight in the new financial reform bill appears to have fallen victim to Senate negotiations. Did nobody tell the old guys that they’re investors in the auto industry?
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In response to Senator Chuck Grassley’s concern that GM’s claim to have paid back taxpayer loans was misleading, the US Treasury is now saying that it has no problem with The General’s statements. According to the Freep, a Treasury letter to Grassley explains that:
GM’s decision to pay off the loan signaled the automaker did not face “extraordinary expenses,” and that Treasury approved the loan payoff.
“The fact that GM made the determination and repaid the remaining $4.7 billion to the U.S. government now is good news for the company, our investment and the American people,” said Herbert Allison, assistant Treasury secretary for financial stability.
Strictly speaking, GM’s claim to have paid back all US Government loans is correct. The only issue is that GM’s ad touting the payback makes no reference to the fact that it still owes the Treasury upwards of $40b. If that misleads folks, well, apparently the Treasury Department isn’t going to do anything about it.
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We’re really trying to put together a world-class manufacturing team. We’re trying to create a Spartan army of expertise.
Tesla CEO Elon Musk give Automotive News [sub] his most inspirational metaphor for Tesla’s effort to ready production of its $50k Model S sedan. And though Musk is quick to call outsourced production “wishful thinking,” the vehicle’s transmission and battery cells as well as “wiring harnesses, skeletal mechanisms for the seats, and glass for the windows” will be supplied by outside firms. Musk says that sourcing for 80 percent of the Model S’s components has been narrowed down to one or two companies, and a plant location in Southern California will be announced shortly. But, he notes, the factory deal isn’t done yet. Or, as Musk puts it:
It hasn’t yet been finalized. We’ve almost fully negotiated the deal, but it has not been signed yet
Former EV-1 driver and “science guy” Bill Nye hams it up while promoting GM’s Volt Extended Range Electric Vehicle. And actually, according to a recent gm-volt.com interview with Bob Lutz, GM now prefers that you refer to the Volt as “an electric vehicle with range extension.” Huh? Sounds like they’re gonna need a science guy to break this one down…
TVR has never been a well-known brand in the United States, where its closest brush with fame was a cameo by a TVR Tuscan in the excrescent JohnTravolta vehicle Swordfish. In the UK, however, the TVR name is as rich in legend as Lotus or Morgan, speaking to a proud history of wild, hairy, fiberglass muscle cars with bizarre styling and even more bizarre handling characteristics. And like most blue-collar, British, backyard shed-based sportscar makers, TVR has not had an easy time of it lately. Having spent ruinous amounts developing an in-house V8 and a derivative straight-six engine under Peter Wheeler’s leadership in the 90s, the company fell on hard times and was bought in 2004 by 24 year-old Russian oligarchlet Alexander Smolensky. Despite promising to keep TVR British, Smolensky broke up the firm, kept the IP and brand rights, and reportedly moved production to Turin. Now, suddenly, Smolensky says he’s bringing TVR back, promising an appearance by an all-new Chevy LS-powered TVR at this summer’s Goodwood Festival of Speed. And yet TVR fans aren’t exactly falling all over themselves with glee… now why would that be?
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Anywhere there’s a gold rush, competitors have to worry about getting caught on the bust-end of a boom-bust cycle. With the growth of China’s car market projected to roll all the way to about 20m units annually, automakers hoping to cash in on booming sales have to wonder whether their investments in Chinese capacity will actually be used efficiently. And, as the European market is learning, government consumer incentives can also inflate projections, only to create a collapse in demand after they are phased out. These factors have combined to create a bit of a panic about the possibility of a Chinese-market oversupply, as financial analysts start reigning in automakers’ rampant Sino-optimism.
Fleet sales were up 47 percent in the first quarter of this year, driving sales at a number of automakers. Ford, in particular, is targeting fleet sales unapologetically by touting a recovery in resale values for the Blue Oval Brand. Ford’s Mark Fields tells the Freep:
We love fleets at Ford…Ford remains focused on our disciplined approach to daily rental, making sure we help keep growing residual values
At Chrysler, which suffers from some of the lowest resale values in the business thanks in part to a longtime addiction to fleet sales, the response seems a bit more… conflicted.
Deutsche Straßen sind nicht der Nürburgring.
But there I go, quoting German Minister of Transportation Peter Ramsauer out of context, and in the original. Herr Ramsauer’s rebuke comes on news of a late-night crash involving a future Mercedes ML Class prototype, that resulted in the death of a 26-year old man over the weekend. The crash took place on a stretch of non-speed-limited autobahn between Singen and Stuttgart, favored by Mercedes and Porsche for high-speed testing. Apparently the victim had been involved in a minor accident and was trying to exit his vehicle (stalled in the left lane, according to Der Spiegel) when the Mercedes test mule slammed into his car, killing him instantly. The 52-year old test driver is under investigation for negligent homicide.
… you’ll get covered in red food coloring? Or is this ad by Mudra Group for the Bangalore Traffic Police [from Copyranter via Daily Dish] trying to say something else? Meanwhile, when do we get an Oprah Winfrey version of this spot?
Back in October, GM’s then-CEO Fritz Henderson announced that GM would make a stand on market share, refusing to allow its share of the US market to slip below 29 percent. Oh wait, that was Gary Cowger’s campaign of 2003, which saw GM execs wearing symbolic “29” lapel pins. Where Henderson actually drew GM’s market share line in the sand six months ago was
At this point about 19 percent… We’ll finalize that, but I’m not interested in going down from that
And according to the Detroit Free Press, GM actually achieved that goal in December, logging a 21 percent share based on Autodata findings. Unfortunately, things have been slip-sliding ever since. In February, GM’s share fell to 18.1 percent, and last month it fell even further, to 17.6 percent.
CAFE got you down? Worried that it’s only a matter of time before the feds come for your V8? You can relax a little, as General Motors is announcing that it will spend nearly a billion dollars rolling out its next generation of small-block V8 engines. According to Automotive News [sub], GM is dropping $893m to upgrade or renovate engine plants in Tonawanda, NY; Bay City, MI; Bedford, IN; Defiance, OH; and St. Catharines, Ontario. These new plants will build GM’s next generation of all-aluminum V8 engines, which will use direct-injection and a new combustion system for improved efficiency.GM won’t say what vehicles these new V8s will be offered in, but expect this to signal the end of the road for the Northstar family of engines as well as replacing the outgoing small-blocks. And what of GM’s commitment to reducing emissions? According to The General’s presser, all of its future small-block V8s will be E85-capable, meaning they qualify for the CAFE ramp-up’s Flex Fuel Vehicle credit loophole. As such,
their fuel economy is determined using a special calculation procedure that results in those vehicles being assigned a higher fuel economy level than would otherwise occur.
Which helps explain why Sen Chuck Schumer (D-NY) doesn’t mind publicly lobbying for V8 production at Tonawanda despite his strong belief in Global Warming: the regulatory fix was already in.
In a study for the International Council on Clean Transportation [full study in PDF format here], Lotus Engineering sought to prove that major reductions in the mass and fuel consumption of mass-market vehicles would be possible by 2020 through the use of new materials and architectures. Starting with a Toyota Venza crossover, Lotus was able to show that a 38 percent reduction in vehicle mass (not counting the powertrain, 33 percent reduction including powertrain) will be possible with a mere three percent increase in component costs. Based on DOE estimates, that means the Venza’s efficiency could be improved by 23 percent solely through changes in materials and design, with future powertrain efficiency gains adding cumulative benefits.
Audi and BMW have history of trading shots in their advertising, not only calling out their rival by name, but also targeting each other’s advertising. With China taking on increased importance in the global luxury car game, the battle has moved to Hong Kong where BMW has purchased this giant billboard… immediately over an Audi dealership. Insecure much?
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