Given Ferrari’s pricing politics, it seems safe to assume that Ferrari/Maserati is a fairly profitable enterprise for its 85 percent owner, Fiat. Indeed, with over $2.5b in combined revenues last year and an 11.5 percent operating margin, the Italian sportscar brands aren’t exactly dying of economic downturn-related causes. But at today’s presentation of Fiat’s five year plan, CEO Sergio Marchionne revealed that his firm has big plans for Ferrari/Maserati, and gave unprecedented planning details as proof of the brands’ path towards even greater profitability.
Having acquired Saab’s old 9-3 and 9-5 platforms, Beijing Auto is wasting little time in putting the old Swedish warhorses back into action. In fact, if you cover the digitally-altered front end of this C71 concept, you’ll notice that it’s barely been changed. And that’s not all: at least one of BAIC’s two new SUV models seem to take more than a little inspiration from Jeep’s Wrangler and Grand Cherokee. Rather than simply ripping off popular models as other Chinese automakers do, BAIC’s designers seem only to seek inspiration from their partner firms. The weird part: BAIC has signed a deal to sell new, “real” Saabs at its Chinese dealerships. The real deal and the cheap, outdated knockoff sold in the same dealership? Even by Chinese standards, that’s a bizarre strategy. [via ChinaCarTimes]
How cruelly ironic is it that the UK, home of the world’s most vibrant sportscar cottage industry and some of the most notorious “petrolheads” in Europe, is also the world’s leader in automated ticketing and surveillance? Oh, and before you try to answer, understand that Old Blighty’s Orwellian tendencies have just hit a new high/low. The Telegraph [via Jalopnik] reports that Britain’s Home Office is testing new average speed cameras which combine license number-reading technology with a GPS receiver. In contrast to previous generations of speed cameras, the new system, named SpeedSpike, can calculate average speed between any two points in a network, rather than just in a straight line. (Read More…)
Ever since a debt crisis toppled the already-precarious auto sector into undeniable crisis there’s been a running debate about when US car sales would “return to normal.” By now though, even the most ardent bulls seem to have accepted that 2007’s 16m number will be out of reach for at least several more years. So, how will we know when we’ve hit the new normal? According to Edmunds, at least one statistic roared back to 2006 levels last month: the percentage of sales financed at zero percent.
In March, more than 22 percent of financed new cars were purchased with zero-percent finance deals. Last March the total was just 13 percent. The prior high was 21 percent in July 2006.
Ask the good folks from Hybridcars.com what today’s big news was, and they’d probably point to their own scoop, titled Hyundai Has Prius-Killer in the Works. It can be hard for blogs to get OEM reps on the phone, and Hyundai’s product public relations manager Miles Johnson walked an enticingly vague line:
We are studying a dedicated Prius-fighter vehicle, meaning a hybrid-specific nameplate that isn’t based off a Sonata or a Santa Fe. It’s its own thing. We’ve also been studying plug-in hybrid technology, which is a bit farther out for us, but the near-term would be a Prius-sized vehicle… You can look at the dimensions of the Blue Will concept and see it would be a similar package and size to a Prius.
With Hyundai launching its first US-market hybrid, the Sonata, later this year, this is yet another sign of the big H’s relentless momentum, right? Well, not exactly…
When friends of the automobile think about environmental regulation, our minds tend to tend to leap towards emissions. Between energy independence, air quality and the specter of global warming, a number of political agendas focus auto regulations on the tailpipe and drivetrain, driving a number of changes in the industry. But, as the AP reports, engines aren’t the only automotive components that impact the environment. The state of Washington has voted to ban brake pads with more than five percent copper content by 2021, making it the first state in the union to address the accumulation of heavy metals in groundwater through automotive regulation.
First developed by Holden in 2004, GM’s Zeta platform now underpins vehicles as diverse as the Statesman/Lumina/G8/Caprice sedans, and the Chevy Camaro. Originally designed for full-sized , rear-drive Australian sedans, Zeta was downsized as far as it could be for the Camaro, which reviewers largely view as overweight and rather too ungainly for true sportscar status. Accordingly, GM has been developing a new rear-drive platform known as “Alpha,” which will form the basis of GM’s performance and luxury RWD models for the considerable future. Last we heard about Alpha was last August, when Bob Lutz swore there was no development underway of the platform he compared to BMW’s 1-/3-series. According to Motor Trend, work on the Alpha platform has begun… but there are already signs of trouble.
Having helped launch the fad for four-door coupes that’s currently sweeping Europe with its CLS, Mercedes-Benz wants to move the game on to a whole new niche with this CLS Shooting Brake five-door hatchback. This styling concept [via Autocar] bridges the gap between Mercedes’ current design language, and its next-gen look, which was previewed in Geneva by the F800 Style Concept.
Fiat Chairman Luca Cordero Di Montezemolo will be leaving the firm to pursue a career in Italian politics, according to Automotive News [sub]. Montezemolo will remain on Fiat’s board, and will continue to serve as chairman of Ferrari, but he will be replaced atop the Fiat empire by vice-chairman and Agnelli family heir John Elkann. Fiat’s shares rallied considerably this morning, according to Bloomberg Businessweek, but not because Montezemolo is on the way out. Rather, Fiat has finally announced the news that speculators have been waiting patiently for: the firm now confirms that it plans to spin off its auto business.
Patent drawings of what appears to be a compact/subcompact MPV bearing the Chevy Volt’s grille have surfaced at GMInsidenews, setting off much speculation as to what it all means. And boy is there room to speculate. Initial impressions are of a Chevy Orlando/Buick Granite with a Volt-alike grille, but upon closer inspection the line drawings appear to show a smaller vehicle. After all, Orlando is supposed to offer a seven passenger option, and it’s hard to imagine sitting aft of those rear doors. And yet the Volt drivetrain was built around GM’s Delta II platform, which underpins both the Orlando and Granite (in concept); why would GM downsize its expensive EREV to the Aveo’s Gamma II platform before building out Delta II variants?
Chrysler is considering bringing a Fiat-engineered subcompact sedan from Serbia to North America under the Chrysler brand. The Chrysler brand product plan, unveiled in November, called for a Fiat-derived subcompact sedan to be imported in 2013. The vehicle would be built in Kragujevac, Serbia, where Serbian automaker Zastava Automobili once made the Yugo.
Chrysler? Fiat-engineered subcompact? The Yugo plant? C’mon Automotive News [sub]… April Fools was weeks ago. Besides, this seems too cruelly ironic to even properly be a joke. Remember, these little gags have to come from a place of love…
Ahead of Fiat’s 5-year plan presentations, Automotive News [sub] is reporting that the Turin-based firm is developing a four-door version of its 500 subcompact. And not just to take on Europe’s Opel Meriva and company: the 500 Multipla will be then fourth and final member of the US-market 500 family.
Since GM has only recently come out with GAAP-approved financials, determining the company’s value isn’t easy. Still, The Detroit Free Press‘s Tom Walsh reckons The General is worth more than Ford, despite the fact that GM recently fell out of the Fortune 500’s top ten (and below Ford) for the first time in its 100+ years of history. What gives?
When GM was lobbying for a federal bailout back in the Fall and Winter of 2008-09, desperate times called for desperate measures. Unable to explain why 30+ years of decline didn’t open The General’s corporate eyes to the need for change back when it could still afford it, pro-bailout agitators reached for the most divisive, debate-squelching justifications for a billion-dollar handout they could find. Whether that meant accusing opposition of weakening national security, ingratitude towards the outcome of WWII, racism, classism or even more racism, GM’s pro-bailout campaign left no wedge issue or leverageable political identity untouched. And man, are old habits hard to kick. The Detroit News reports that:
General Motors Co. is making a pulpit pit stop today as part of its accelerating quest to change perceptions among buyers, boost market share and reach new customers — particularly minorities.
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