The autoblogosphere is on fire with talk of the CAR Magazine’s photos of the McLaren P11. The mid-engined F430-fighter has had a tough development so far, and McLaren is probably trying to get some positive coverage for its ambitious project by leaking images to CAR. But we, the chattering enthusiasts, have to ask ourselves what we’re getting so excited about. Though CAR has “Photoshop experts” to confirm that the images are “real” many bloggers have failed to report that the images are of a clay model. No mirrors, door handles or any other street-legalizing kit is shown on the models, meaning many changes are still to come. Also, CAR reports (on the third page in) that the “early styling buck” pictured has yet to receive treatment from recently-hired ex-Fiat styling chief Frank Stephenson. This means the production model should (if Stephenson is to earn his money) look considerably different than what is currently being shown. And then there’s the issue of the motor. Mercedes is playing silly buggers with McLaren, refusing to hand over the AMG 6.2 liter V8 that McLaren wants, possibly due to an Aston-Martin engine deal. In other words, we know basically nothing about the P11. It may not be what you want to hear, but dammit, it’s the truth.
Posts By: Edward Niedermeyer
Like the gas price spike that helped launch the current industry death spiral, nobody saw a possible D3 bankruptcy coming. Well, outside of this little corner of the internet, anyway. But with the mainstream media catching wind of what we’ve been crying in the desert for years now, a number of well-known industry analysts are coming around to the notion that America may not have three big automakers anymore. Jalopnik’s Ray Wert was ahead of the (adjusted) curve, bellying up to the TTAC line (sorta) yesterday. Today, none other than Danny Howes of the Detroit News is playing Cassandra-come-lately as merger and bankruptcy rumors take industry-watchers by storm. To be fair, Howes isn’t blind to Detroit’s sins, and his columns have been taking an increasingly alarmist tone for some time now. But until this week he’s faced the strings and arrows of outrageous fortune with brave face and stiff upper lip. No longer.
In a country of a billion souls, where billionaires waft in their Quattroportes alongside whole families in Chang’an Altos, justice is not easy to come by. The absolute power of China’s central government is two-sided sword: capable of rapidly enacting transformative change, but also equally capable of drawing the instant ire of hundreds of millions. Thus, to deal with a boom in car ownership and its attendant congestion issues, Beijing has turned to the only fair method of government to force drivers from the road: a lottery. Yesterday, Beijing’s government announced that cars with license plates ending in 1 or 6 would be banned from the road for a day. And just like that a fifth of Beijing’s 3.5m (and counting) cars were off the road. Autocar reports that tomorrow numbers 2 and 7 are next.
[Note: TTAC translation after the jump.] “About a month ago, “GT-R will be suspended orders,” “a temporary stop of the factory production line,” or “to raise RERURASHII” such as spreading rumors. Many were picked up by car magazines, so many of you already know it. In fact, readers have also been inquiries about the matter, MENAKATTA reliable information for the article said. However, “the temporary suspension order” of the rumors, apparently was real We found that around October 6 from the dealer orders for the GT-R has been temporarily suspended. However, the resumption of orders from what is not known at the time. On the other hand, “a factory production line” and “raised” about the rumors about the missing evidence. Rumors about the two of the following hypothesis is based. “Hike” about the current economic situation surrounding the automotive industry and raise the performance of Nissan North America, will be given a very high probability. On the other hand, “is evolving every year,” said Mizuno’s remarks were as CVE, GT-R will adopt the IYAMODERU. Released after one year from now, but it is not equal to the period. If this year will be the timing of design changes. “Temporary stop of the factory production line” rumors, the line for renovation under the influence would come true. In any case, GT-R is considering a purchase if the sales rep and keep in close communication is necessary. However, a formal case for release from Nissan. Mizuno’s really in the head, such as Spec V story, including what is being depicted?
Financial advisers seem to agree that a panic-fueled stock market decline has opened a number of opportunities to snag solid investments on the cheap. Stock in solid, well-proven companies is being sold at huge discounts as panic grips the market. So why in the name of price-earnings ratios is the Detroit News shilling Ford and GM stock? Well, to be fair, the newspaper itself isn’t hyping stocks, because “Biz Insider can’t officially offer investment guidance into purchases of General Motors Corp. or Ford Motor Co. stock.” And why would they, when they have professional misleaders for that job? Former Chrysler spokesman and now Compuware Corp. veep Jason Vines “shared his own thoughts on the stock at the annual Automotive Hall of Fame dinner, telling the crowd of auto aficionados to buy, buy, buy Ford and GM paper.” No, seriously. And guess what else Vines would suggest you buy?
And we’re back! Our ongoing coverage of GM’s attempts to squeeze yet more money from your elected officials continues apace. We’ve got two stories on a potential “stopgap bailout” designed to keep GM afloat while funds from the already-approved bailout clear regulations. The first story from Automotive News [sub] indicates that while GM is flailing around for a merger partner, it is seeking access to the fed’s discount lending window, which is already pumping some $420b a day into distressed financial firms. Such access would allow GM to borrow at a 1.75 percent rate, a far better deal than the already-sweet 4.5 percent it will get when the $25b bailout becomes available. With its stock at 60-year lows, GM will likely need this access to put any kind of merger together. The feds won’t comment on this plan, and Automotive News [sub] reports that GM has not yet sought the funds. However…
So GMAC doesn’t lease anymore, and its ResCap mortgage arm is properly screwed… but they still write car loans, right? Er, sort of. Automotive News [sub] reports that GMAC is limiting loan terms to 60 months beginning this week. “We’ve been writing fewer 72-month loans,” Mark LaNeve, GM’s vice president of North American sales, service and marketing, tells AN. “In September and October, we did a much higher percentage of cash — meaning non-lease or non-APR, than we did in decades.” Which is an extremely cheerful way of saying GMAC is fucked. In September 2008, loans of 72 months or more accounted for 43.0 percent of all loans approved by GMAC, according to Power Information Network. That figure was down from 72.9 percent in July and about the same as the 42.0 percent in February. The really bad news? Loans of 60 to 72 months accounted for 45.5 percent of all loans approved by GMAC in September, up considerably compared to months past. In other words, 88 percent of all loans made by GMAC in the past month were for 60 month terms or higher, and the music is beginning to stop. GMAC spokesfolks insist that the “tightening of underwriting standards” has been going on for a year, and that the new restrictions on 72-month loans will only affect a “small percentage” of GMAC customers. For now. If GMAC’s forced to restrict 60-month loans (a scandalously long auto loan term just a few decades ago) there goes some 80 percent of its new business. Gulp. As for GM dealers, they’re already shopping for loans elsewhere.
Motor Trend has a hot hand right now with the investigative journalism. After stunning the world by announcing that the new Corvette wouldn’t be mid-engined (gasp!) the MT boyz have more hot, fresh news to blow your mind. Specifically, that they hear rumors that the Toyota iQ could be sold stateside as a Scion. What, you mean the iQ city car won’t be sold next to the cheaper, larger, faster Yaris on Toyota’s showroom floor? We’re shocked, shocked we say. The US iQ will be revealed at the LA Auto Show in November, at which point we will know if it’s to be a Scion or a ‘yota. Not that there’s half as much drama as MT lets on. In addition to the difficulties in positioning the iQ vis-a-vis the Yaris, there’s also the concern that it could steal some thunder from the new Prius, set to be unveiled early next year in Detroit. Yes, it would be priced similarly to the xD, but the size an door-count differences make cannibalism less of an issue than if the iQ were branded as a Toyota. Besides, Scion desperately needs a sales boost right about now. Then again, the iQ could also fit well with a rumored dedicated Prius brand… except that it will be expensive and efficient enough without a hybrid powertrain. And so Toyota begins to reap the bitter harvest of multiple brands, an early symptom of what ToMoCo Prez Watanabe calls “Big Company Syndrome.”
The lovable dudes at Jalopnik are usually too busy trying to shoehorn Hemis into Datsuns or photoshopping NSFW dragon-on-car action to comment at length on the sad state of the American car industry. When they do, Jalop-in-Chief Ray Wert is usually trying too hard to love all God’s internal-combustion children equally to live up to TTAC’s lofty standards of callin’-it-like-it-is. Hell, the “industry apologist” label might even stick on Wert, thanks to his proliferation of the “Not A Bailout” meme just a few short months ago. But time has a funny way of bringing even the most fun-loving of auto enthusiasts around to the TTAC perspective. In response to GM’s stock price free-fall, Wert has penned a lengthy piece calling on GM to declare bankruptcy. At least he had the decency to begin the piece by acknowledging “I’m not the first person to say it.” With that qualification aside, Wert proceeds to spit hot fire. “The pundits saying ‘bankruptcy is not an option’ are completely ignorant of the facts, living in an alternate reality or parroting the GM PR public line (a line I don’t begrudge GM for pushing given the need to be positive or else face a rush for the hills), because let’s be clear here — if the marketplace for credit does not change in the next year, bankruptcy is not only an option, it’s the only option.” And, says Wert channeling his inner Robert Farago (circa 2005), bankruptcy shouldn’t be feared. “Any form of court-mandated reorganization allows GM to reevaluate all sorts of deals — like the one recently signed with the UAW, with suppliers and most importantly, with creditors seeking repayment on the $43 billion in debt and $80 billion in other liabilities on the books at the General — potentially allowing the automaker to wipe some of that out.” Interminable sentences aside, Wert’s got a point. Better late than never.
Production began today at Honda’s Greensburg, Indiana plant, which will build 200k Civics when at full capacity. “With continued high demand for the Honda Civic, we are honored and excited to help meet the needs of our customers in North America,” Yuzo Uenohara, says president of Honda Manufacturing of Indiana (HMIN) in a press release at hondanews.com. “Our new Indiana associates are dedicated to building the very best Honda products, with customer satisfaction as our top goal.” Trial production has been going on for several months already, and the first shift which begins work today will be joined by a second shift in 2009, employing a total of 2k workers at full capacity. All Civics built at Greensburg will rock Honda’s 1.8 liter, 140 hp VTEC four-banger, built nearby in Anna, Ohio. So fear not, automotive doomsayers. America is gaining new automotive jobs, just not from Ford, GM or Chrysler.
Rising gas prices and lagging credit markets should spell a revival of the small car in America, but MSN Autos reports that (duh) mid-sized family sedans keep getting bigger and bigger. And it’s not as simple as just pointing out that the Accord has gained 1,400 pounds and 200 hp since it was first introduced. Cars like the Accord and Hyundai Sonata have outgrown their EPA mid-sized ratings and are now classified as “large sedans.” The new 2009 Mazda6 has grown seven inches longer and two inches wider in response to customer complaints that the sporty sedan didn’t offer enough interior volume to compete with the Accord, Camry and Altima. And with more weight, power and size come higher prices: the Mazda6 now tops out at a hefty $34k while returning only 17/25 mpg in V6 trim. Most D-Segment standards now won’t hit 30 mpg on the highway, although improved size, power and safety mitigate some of those concerns. But with CAFE standards headed up, America’s D-Segment sedans may have reached a high-water mark in size and power. Already premium performance sedans like Acura’s TSX and Audi’s S4 are seeing their horsepower numbers decline, and a reduction in size and weight could be in the cards for future D-Class competitors. Meanwhile, sales of compact cars continue to boom, while larger sedans struggle. But will family sedans become the new {SUVs} crossovers, offering family hauling at relatively higher efficiency than the Explorers and Tahoes of yore, or will they wither on the vine as Americans go compact? As Linda Richman would say, discuss.
The next Volkswagen New Beetle will have more “mature” styling, reports Automotive News [sub], in news that will come as a sad shock to the MILF, openly homosexual and high-school-gum-snapping communities. “The future New Beetle should look less toyish and become a much more mature product,” glowers Walter de’ Silva, VW’s chief of design to AN. Expect VW to eliminate the vast tundra between A-pillar and steering wheel when the new model drops in 2012. The current long-running New Beetle was much criticized for offering less interior room at a higher price than its Golf platform donor. But Vee-Dub has to be careful here. Though the outgoing model could easily be more practical, the New Beetle has always been bought for “cute value,” and if the Germans sober it up too much it could lose its appeal vis-a-vis the Golf. After all, wasn’t reviving the Rabbit name and plaid GTI seats a way to infuse the Golf with boomer retro appeal (apparently the cornerstone of VW’s brand appeal)? Against that backdrop, shouldn’t the Beetle become even more “toy-like” to stand out? Then again, maybe I’m just bitter that there almost certainly won’t be a rear-engined, VW up!-based baby Beetle. And while we’re speculating on retro variants, could VW please build a seven-passenger, retro-styled, Microbus on the Golf Plus platform? That new Tennessee plant would be a great place to build it…
Chrysler uses Getrag DSG transmissions in its Euro-market Journey, Avenger and 300C offerings, They’d planned on offering them on its American models as well. So much for that, at least for now. Chrysler is suing Getrag in Michigan for failing to raise $300m in debt financing for its new factory. Automotive News [sub] reports that the Tipton plant is the victim of a complex partnership disagreement that has delayed the 2009 production date and, now, casts the entire project into question. Like many a lawsuit, the conflict defies simplification, but Automotive News condenses it thusly: “The complaint says that Chrysler had agreed to a price increase on the transmissions to get Getrag to sign a definitive agreement for the project. Getrag had balked at the agreement and briefly stopped work at the construction site in December 2007, the lawsuit says. Chrysler alleges that Getrag had assured Chrysler that it could raise the debt financing. The lawsuit says Getrag did not make a good faith effort to get the money.The lawsuit indicates that Getrag had sought to line up the money from German banks as long as it was guaranteed by the German government. Chrysler argues that it should have been informed of that condition before signing the definitive agreement. As it turned out, the German government would only guarantee the debt if Chrysler set up a $300 million escrow account to assure repayment, the lawsuit says.” Simple.
Marketwatch reports that Honda and Toyota are warning against using their hybrid vehicles as taxi cabs, on safety concerns. Ford, GM and Nissan have also refused to certify the crashworthiness of their hybrid vehicles as hire cars. The story starts with an August 29 letter, sent from the New York Taxi and Limousine Commission (TLC), asking automakers to certify that their hybrids or alternative fuel vehicles are manufacturer-approved to be used as taxicabs and safe when modified with partitions and other TLC requirements. This letter in turn came from a Metropolitan Taxicab Board of Trade (MTBT) legal challenge to TLC’s mandate that all new NY taxis be hybrids or other vehicles that achieve 25 miles-per-gallon. Citing a 2008 engineer’s report that finds hybrids to be unsafe and unfit as New York City taxicabs, the MTBT have held up TLC’s mandate in court, and now that automakers won’t certify their safety, the TLC mandate may be DOA. Issues over safety partitions and their interaction with side-curtain airbags and other safety equipment prevent automakers from certifying the safety of their hybrids when modified for taxi use. Since nobody crash-tests hybrids modified with safety partitions, nobody will take any legal responsibility for them, and thus they may well die on the vine. Meanwhile, in less hellishly violent corners of this great nation, cabbies are turning to hybrids with enthusiasm. As long as you don’t need several inches of bulletproof glass between you and your customers, hybrids are a safe, efficient choice for taxis.
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