Though New York’s new “Empire Gold” license plates aren’t opening the same constitutional can of worms as South Carolina’s recently-rejected “I Believe” plates, they’re still generating some feisty political opposition. By next April, every licensed vehicle in the state will have to switch to the new plates, at $25 a pop. That’s ten bucks more per plate than the previous models, and keeping your previous number or vanity plate will cost an additional $20. The switch is estimated to raise $129m for the state, which is currently facing a $5b budget shortfall. But according to Newsday, some 57,000 New Yorkers have signed a petition at nonewplates.com, expressing their displeasure with the new plates and their fees. Best of all, the new plates will mean new jobs for 120 inmates in New York’s penal system. The inmates will be paid 42 cents per hour to produce the plates.
“You’re going to see it of course in the 3 Series,” BMW’s Tom Baloga tells Inside Line, “and the 5 Series is a good possibility. If the performance [of such an engine] is sufficient in the X3, U.S. customers would likely accept it in the X5 as well.” The “it” he’s referring to is BMW’s two liter turbodiesel engine, which BMW hopes will soon make up 10 to 20 percent of its engine mix in the US. And the Bavarians aren’t bringing the diesel four over for mere miserly mileage alone. “We would be focusing to make sure we get the performance that people expect without squeezing every last mile per gallon out of it,” Baloga says. “I don’t think we would ever consciously look at [the VW Jetta TDI’s] numbers and say ‘we have to beat that.'” (Read More…)
Brace yourself ladies and gentlemen, because an automaker is taking on one of the American market’s greatest bugbears: size and weight bloat. Mazda’s vehicles have gained 80 pounds on average with each recent redesign, according to Robert Davis, senior vice president of product development and quality for Mazda North American Operations. Davis tells Automotive News [sub] that increases are coming “mostly in larger tires and wheels, and safety equipment,” resulting in a 2010 Mazda3 that weighs 2,868 pounds compared to a 2003 Protege’s 2,634 pounds. And, says Davis, that’s all about to change. He promises “typical” weight reductions of 220 pounds per vehicle on future Mazda models, through a combination of measures. For one thing, dimensional creep is a thing of the past, with some Mazda models scheduled to lose as much as three inches in length.
With Tata unable to produce enough Nanos to keep up with demand, more automakers are gunning for its entry-level segment. Renault-Nissan is teaming up with its Indian-market partner Bajaj to produce a car that’s even cheaper to produce than the Nano. “I can tell you the cost of this car would be lower than any car today made in India,” Renault-Nissan CEO Carlos Ghosn tells Gasgoo, adding that a lower production cost wouldn’t guarantee that the new car would be priced lower than Nano. The Renault ULC, as the low-cost car is being called during development, will be available in India in 2012, by which time GM and Toyota could have competing models on the market. Ford’s recently-announced Indian market low-cost car, based on the discontinued previous-generation European Fiesta, will be positioned above the Nano. And that strategy also appeals to Honda. The Motor Company tells the WSJ that rather than competing directly with the lowest-cost segment, a sub-Fit (Jazz, as it’s known globally) hatchback will be introduced around 2012 to compete with Ford’s model. The Jazz/Fit currently sells for about $15,000 in India, leaving a huge window between there and the Nano’s approximately $3,000 price price tag.
“I don’t see anyone bleeding to death,” Sergio Marchionne told reporters and analysts a week ago, when asked what he thought of Chrysler’s current dealer body. He might be about to change his tune. The US Treasury will stop guaranteeing GMAC’s floorplan loans to Chrysler Group dealers on the 21st of this month, and the bailed-out lender has marked over 100 dealers to be cut off. According to the Detroit Free Press, these dealers had all survived Chrysler’s dealer consolidation efforts in bankruptcy, indicating that their sales business is relatively steady. But because of huge investments made with Chrysler Financial loans at the height of the real estate market, these dealers owe more than their dealerships are worth. Chrysler Financial is winding down its business, and it refuses to give up the first right to the property as collateral. Because GMAC is now a bank holding company and requires more collateral on loans than it previously did, it wants land and buildings put up as collateral that are already securing old Chrysler Financial loans. Of course those old loans were for renovations made as part of Chrysler’s “Project Genesis,” which dealers had little choice but to participate in. If those Chrysler-mandated investments meant certain dealers were not going to qualify for floorplanning, they should have been culled during bankruptcy. Which is why NADA is appealing to Chrysler CEO Sergio Marchionne on behalf of the threatened dealers. And maybe if Marchionne takes a look into this meatgrinder, he’ll see a few dealers stuck between giant, bailed-out businesses, bleeding to death.
The single trim level is what tipped us off, and if we’d looked closer at its spec sheet, we’d have seen that its manufacturing location is listed as “Rüsselsheim, Germany.” Automotive News [sub] reports that Regal will be built in Germany for 15 months before production shifts to Oshawa. Which makes the Regal even more of an odd duck. In addition to being stuck into GM’s bursting lineup of Epsi-II midsize sedans, it’s also losing whatever profit it might have made on the dismal foreign exchange rate and the boat ride over from Europe. Or it will be just plain overpriced. Think of it as the love child between a Saturn Astra and a Pontiac G8. And another sign that some things never change.
The American version of a Chinese rebadge of a German sedan to be built in Canada will be available at your local Buick dealer starting in the second quarter of next year. According to GM’s presser, the new Regal will initially be offered with the direct-injected 2.4 Ecotec, making 182 hp. Which, you gotta say, doesn’t sound like luxury-level motivation for a 3,600 lb car. A 2.0 turbocharged version with 220 horsepower will be offered later next summer. There will be no manual transmission option (both get 6-speed autos), and in a weird turn towards the Acura side of life, only one trim level (CXL) will be available. Accordingly, the 2009 Acura TSX and Volvo S60 are shown as competitors, although the 2.4l Buick comes up short of both in standard horsepower and rear headroom. In the real world though, GM picked some pretty safe competition: the S60 sold under 9,000 units in 2008 while the TSX sold just under 32,000 units. The Regal competition that Buick should really be worried about is its slightly-larger, more-optionable Epsilon II platform-mate, the LaCrosse.
GM spokesfolks tell Automotive News [sub] The General is “in the process of re-establishing select points in certain markets around the country as part of our ongoing analysis of our dealer consolidation efforts.” Don’t hurt yourself thinking too hard about that though, because it’s one of those “we must destroy the village to save the village” things. GM is apparently contacting certain former dealers and inviting them to open new dealerships, having already forced them out of business once in bankruptcy court. According to the Committee To Restore Dealer Rights, former dealers in Pennsylvania, Illinois, Michigan, Ohio, Colorado and Massachusetts have been contacted to open new dealerships, in urban and rural markets. Some culled dealers located in areas GM has targeted for new dealerships were not invited by GM to submit proposals, and the CTRDR considers this a play by GM to drive a wedge within the ranks of the culled dealers. Negotiations between GM and its aggrieved former dealers resume tomorrow, and news that GM is re-opening dealers less than a year after it shut down 1,300 won’t be good for their political popularity. And yes, that matters. Meanwhile, details on how many dealerships are being opened are still forthcoming from General “Transparency” Motors.
The catalyst for all this was the EU saying you only made the money available to one investor. The board did what they should have done and revisited the issue… It’s been a confusing decision, but I don’t think it was handled badly. The circumstances changed from the time this started. The financial part of the business got better. Conditions have changed.
GM Chairman Ed Whitacre on the decision to keep Opel. Financial? Better? Because EU regulators said so? How anyone can see the Opel situation as a “sign of change” is beyond me. GM never wanted to get rid of Opel, they just didn’t want to pay the $8 bil, er, $3 billion to keep it. Too bad German Economics Minister Rainer Bruederle says it’s actually going to cost a cool $5b to restructure Opel. Which GM will just be cannibalizing with Chevwoos anyway. Is any of this not sounding like Old GM?
Whenever I read a TTAC car review or read comments I see nothing but complaints of hard plastics and ill fits. It made me wonder, is there some ideal vehicle interior out there being held as the standard to all others? I sat in a Lamborghini Gallardo at last years NAIAS and thought the suede covered dash looked ridiculous – but thats probably the opposite of the hard plastics people complain about. Maybe I am just interior challenged that I don’t notice these things but unless my dash is peeling, and as long as it’s pretty intuitive control wise, it’s appealing. So what is the benchmark interior, the standard that all interiors should strive towards?
Customers in this segment want emotional appeal, sporty design and dynamic driving properties. The S60 has it all. We are convinced that it will be one of the strongest contenders around
Volvo CEO Stephen Odell explains in the press release for the new S60 why people who buy 3 Series sedans don’t cross-shop Volvo… and why he wants to expand his brand so that someday they might. But leaving aside the sad fact that every luxury brand wants to build “the new 3 Series,” we’re having a hard time figuring this move out. Considering that Volvo is about to get a Chinese-style upscale overhaul, expect the “dynamic driving properties” part of the “what does Volvo stand for this week” exercise to fall off the radar with haste. And really, Volvo makes a lot more sense as a Euro-tinged, safety-forward alternative to Lexus and (in China) Buick than a BMW wannabe.
The Economic Times of India reports that Tata is considering offering knock-down kits of its Nano microcar and allowing franchisees to offer the world’s cheapest car as a private-label brand. The move is being considered as Tata’s dedicated Nano plant is still ramping up to its 350k unit annual production level, and the company is still having a hard time filling demand. Can’t you just see twelve-packs of Nanos at Costco?
GM CEO Fritz Henderson’s promises of independence for Opel made the right noises, but they carefully avoided any discussion of the actual role GM envisions for its German division within its global strategy. The latest updates seem to indicate that GM will keep Opel for its engineering expertise, but that the brand will be subordinate to Chevy’s global ambitions. Henderson delivers the slapdown [via Reuters]:
Opel is a regional brand and I don’t see that changing. That doesn’t mean I’m closed to ideas about how it can be used elsewhere; but the measure of the Opel brand’s success will be Europe, because if you don’t win here all the discussion of exports will be irrelevant
While reading through some of our analysis of Chrysler’s five-year plan, you may have found yourself wondering “what did the Pentastar boyz do to convince you of their company’s viability plan besides flash PowerPoint slides at you for seven hours?” To fully comply with TTAC’s stringent disclosure standards, we present Chrysler’s material compensation for the seven hours that auto journalists most wish they had back.
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