We’ve seen the signs coming for some time: rumors from Japan, declining car sales at home, advertisments selling cars as “the ultimate mobile device.” And the picture that’s beginning to reveal itself is a challenging one for fans of four-wheeled transport. Young people, once a deep well of enthusiasm and sales growth for the car industry, are no longer as auto-obsessed as they once were. And their vibrant presence in the automotive world does not seem likely to return any time soon, either. How do I know? Because, like an increasing number of people in their twenties, I don’t own a car.
Pity Takanobu Ito. Like many (ok, some) of us, the CEO of Honda is torn between his love for speed and the desire to be perceived as environmentally responsible. On the one hand, he lambasted Toyota for building its $375k LF-A supercar, saying that to his mind the fuel-cell FCX clarity (once described by Jonny Lieberman as “exactly like a Honda Accord”) was his idea of a modern sports car. On the other, “I would like to make a sports car,” Ito tells Automotive News [sub]. “Once we have that technology and once we have cash on hand, I would like to see Honda have a sports car that symbolizes our technology.” Is he referring to the forthcoming CR-Z? Because, as cool as that car looks, it will hardly satisfy the LF-A jealousy we detect in Mr Ito’s voice. And you have to imagine that the creator of the NSX is as qualified as anyone else to design and develop the first 21st Century green sportscar. But what would that look like? Assume any price point up to the LF-A’s insane $375k sticker, and give us some specs. And remember, at this point, green is relative… and quantifiable only in terms of marketing.
Bob Lutz is, apparently. So is Jack Baruth. But will the “V-Series Challenge” prove anything? Not so much. Nobody will be surprised when a CTS-V sets the fastest lap time of the event (at the hands of GM’s test-driver John Heinricy), or if Lutz’s god-knows-how-many practice laps brings his lap time lower than his challengers’. As we’ve said before, GM has set the terms of a battle it is nearly incapable of losing… but what of the war? Who cares what your top-of-the-line sedan is (even if it’s amazing, which TTAC readily admits it is) when your point of entry is the Aveo? Oh, and how much profit does the CTS-V make? Still, we can’t say no to a few hot laps on someone else’s dime. Do you know what a membership to Monticello costs?
That’s right. Buy a $110,000 Tesla Roadster, and according to the Denver Post, the state of Colorado will give you $42,000 in tax breaks. That’s 85 percent of the premium over a Lotus Elise. Colorado’s alt-fuel and zero-emissions tax credit system gives between 50 percent and 85 percent of the premium over a comparable gas-burning car, but as a zero-emissions vehicle only the Tesla can claim the full 85 percent discount. “Most of them are (Toyota) Priuses and hybrid vehicles,” say CO revenue department spokesfolks. Still, the colossal incentive on the two-seat Roadster was enough for the state legislature to limit discounts to no more than $6,000. But that limit doesn’t go into effect until January. Between now and then though, there’s practically no reason to buy an Elise in Colorado… unless you want to be able to fill up at a gas station. [Hat Tip: Freedmike]
The Detroit News reports that car dealers are trustworthy enough (or, more likely, influential enough) to be exempted from the House Financial Services Committee’s recently-passed version of the Consumer Financial Protection Act. The bill, intended to prevent another credit crisis through federal regulation, would have made dealers subject to Consumer Financial Protection Agency oversight had Rep John Campbell (R-CA) not introduced an amendment [PDF] exempting them. David Westcott, chairman of National Automobile Dealers Association’s government affairs committee applauded the move
It makes sense to exclude dealers. Dealers had absolutely nothing to do with the credit crisis. The overwhelming majority of committee members clearly understand that CFPA jurisdiction over dealers is unnecessary and that increased uncertainty in the auto marketplace would limit consumer finance options and increase car buyers’ costs
So, after years of toil, you’ve arrived – a six figure salary, 80 hour workweeks, and Blackberry-enhanced vacations. But it’s not all toil at the executive level – you get to dump the Accord, and drop 50 or 60 large on a first-class luxury sedan.
Home game machines are no good. Playing something that realistic makes the need for cars disappear
So goes the Gawker hive-mind translation of a quote, attributed to an unnamed Toyota executive by Masahiro Kawaguchi, in an editorial published by the Mainichi Newspaper of Osaka (got that?). Best of all, Kawaguchi’s piece apparently goes on to attempt a further causal link to Japan’s falling population. “Guys used to work hard at their job so they could get a stylish, cool car for girl’s to ride in,” he argues. But isn’t the connection between falling car sales and a falling population easy enough to establish without blaming videogames? And what about the geographical arguments for an inevitable leveling-off of car sales in Japan? Or perhaps Mr Kawaguchi was subtly blaming some other, non-car-related “realistic video game” for a declining birth rate. Either way, the comment reflects a gnawing paranoia that is no longer unique to the auto executives of Japan: how do we sell cars to young people in mature markets? I always thought they used video games.
Volkswagen and Porsche are about to make it official, as Volkswagen has now bought nearly 49.9 percent of Porsche. And though we’ve had plenty of time to get used to the idea, there are some troubling indications for the future of the Porsche brand in particular. As usual, the worries begin with an executive (in this case, VW/Porsche’s Michael Macht) explaining exactly how the company will be able to have its cake and eat it too.
Porsche needs to become a strong pillar of VW, as well as having its own production and research and development capabilities. It is important to use synergies as well as having independence… Any new model would have to be exclusive, sporting and make a good business case. In any segment Porsche has to be the most exclusive, as well as being the best quality and capable of delivering the best driving experience
Unsurprisingly though, these fine sentiments are mere prelude to the nasty reality.
Changes are coming to GM’s corporate ranks, likely as soon as government pay regulations are put into effect. CFO Ray Young’s departure is already a sure thing, and former car czarlet Steve Rattner has revealed that Fritz Henderson is an interim placeholder in everything but title. Oh, and Bob Lutz won’t last forever (gosh, that will be a sad day, won’t it?). Meanwhile, GM’s promote-from-within approach to culture change practically guarantees that some other denizen of the RenCen will move up at some point. Sweeping generalizations about GM management aside, is there anyone we should be particularly worried about? Autoextremist Peter DeLorenzo seems to think so. In his latest “rant” about Chevrolet’s decision to review its ad account, he skewers a particular GM executive in terms that make one almost believe he has given up his recent, lamentable role as GM’s resident cheerleader.
OK, so we pulled the Cruze wagon picture because it was a photoshopped fake [Hat Tip to Jalopnik for catching it]. So here’s a different yellow hatchback that also won’t be coming to the American market (thanks for nothing, Roger Penske and Carlos Ghosn). It’s a RenaultSport Mégane, and according to Autobild it’s a two-liter turbo four hot hatch with 250 horsepower. To be perfectly honest though, we’re not entirely sure the picture hasn’t been run through the old shop of photo.
Edmunds Editor-in-Chief Karl Brauer apparently shares our ambivalence about GM’s in-car nanny, Onstar. And not for paranoid reasons either. He explains:
See, I like to think of myself as relatively self-sufficient. Sure, I’ll ask for help but I have to really need it first. However, on a semi-regular basis, when I’m in an OnStar-equipped car I find myself unintentionally activating the system, which in turn causes tremendous guilt because I feel I’m bothering an OnStar employee who could be helping another driver, maybe even someone with a true emergency.
GM’s styling department was originally called “Art and Colour,” an indication of the importance The General has always placed on color. And since the Volt hype campaign is leaving no gimmick unturned, GM is offering fans an opportunity to name the greenish-silver color that debuted with the first production-look Volt. The prize? An early test-drive of a pre-production (of course) Volt. Since we’re sure to be barred from test-fleet Volts, why not submit a color name for a chance at what could be TTAC’s first road test of the automotive Hail Mary? Our choices: Silver Lining or Bailout Green. Yours?
I know that each motor, transmission, and car combination has optimums areas of performance for mileage. All the Jetta drivers that swear by idling in 5th gear are a testament to that. With some of the newer V-8 motors, however, finding the sweet spot is a little more problematic. Take for example a GMC Yukon XL, paired with a 5.3L V-8. Because GM designed the motor to shut down four cylinders whenever it could to increase fuel economy, the motor does just that when coasting, during braking, and for short stretches where the motor can maintain the desired speed (provided the driver holds a steady pedal). Is it possible that because the motor would produce more horsepower under the V-4 mode at a higher rpm/road speed, that there is a sweet spot of efficiency at a HIGHER than expected speed? Having a power curve for the V-4 mode of the motor would be a good starting point to know if there is a point where the V-4 mode is revved higher and produces enough power to better maintain highway speeds, but saves gas because four cylinders are shut down. Any ideas if that exists for the actively managed motors out there and what speed that would be?
Aldo: Hi Mr. Posawatz. I will be buying a Volt and wanted to know if an extension cord could be used to increase the reach for recharging, or if we are going to be limited to the length of the cord that comes with the car. Thanks!
[Chevy Volt Vehicle Line Director] Tony Posawatz: The EVSE or charge cord will be about 25 feet and designed to all relevant codes. We do not recommend extension cords but rather that when you have your home inspection, you reposition your outlet/charging station approproiately [sic].
From a recent Fastlane livechat on the Chevrolet Volt, ironically titled “Making Electric Vehicles Attractive to Consumers.” Which would you prefer?
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