We still have not heard from Saab and there have been six weeks without production. It eventually reaches a point when you have to make a decision

Johan Andersson of the Swedish unit of supplier giant Lear in the WSJ, on why his employers just laid off all 160 workers of its Trollhättan-based Saab workforce. Apparently Mr Andersson and Lear aren’t any more encouraged by Saab’s PangDa deal than TTAC. And considering that the Chinese dealer group is telling Gasgoo that “production has already restarted” at Saab, the fleeing suppliers who haven’t even heard from Saab yet create some credibility problems for the PangDa-Saab alliance (even if PangDa was referencing GM production of the 9-4X at Ramos Arizpe). Which makes the dire rumors that the deal has not, nor will be, blessed by the Chinese government a little more worrying. Sounds like the rotund lady is warming up her vocal cords…

Has Jack’s carping about the empty symbolism of the latest Aston-Zagato project got you down? Looking for some retro-inspired unobtainium that you can feel good about? As Jack himself pointed out just yesterday, TTAC’s all about diversity…so allow us to suggest BMW’s 328 Hommage concept, which was just revealed at the Concorso d’Eleganza at Villa d’Este. Of course TTAC wasn’t invited to that august event, but CarDesignNews was kind enough to tweet these cell phone images of the retro roadster (so be sure to go check out their fantastic site, and pick up a subscription while you’re there). Based around the Vision ConnectedDrive concept, this all-carbon roadster is described as the analog analog (so to speak) of that high-tech concept (which itself previewed the forthcoming Z2 Roadster).  Like the Zagato, it’s got the whole pedigree reference thing down too, as its name refers to BMW’s 75 year-old 328 nameplate (check out a great history of the 328 at bmwblog.com). Plus, bare carbon fiber with leather straps. If this thing doesn’t make you feel at least a little tingly in the naughty bits, well, it might just be time for some medical attention.

The auto media has been receiving its advance copies of Bob Lutz’s forthcoming book “Car Guys versus Bean Counters” over the last few weeks, and have been leaking some of the more provocative statements and conclusions from it. I too requested a book and tore through it over the past week, enjoying Lutz’s direct voice and keen insights into his time at General Motors… as well as the attention-grabbing, politically-charged statements that the rest of the media seems so fixated upon. The bad news is that I won’t be able to write a full review until we get closer to its mid-June launch date, but the good news is that our forbearance has been rewarded: despite sideswiping yours truly in one passage, a brief but rewarding email conversation has generated more mutual respect, and Mr Lutz has agreed (in principle) to a TTAC interview to accompany our review at the time of the book’s release. Sometimes observing an embargo is worth it.

But fear not: just because the promise of an interview with one of the most influential figures in the industry has us delaying our review for another month or so, we’ve got more Lutz-related material with which to build up to what I expect to be a watershed interview for TTAC. Next week I’ll be publishing a review of Mr Maximum’s previous book “Guts,” and to kick of the coming months of Lutzmania, we’ve got a very special contest that is sure to stump even TTAC’s most well-versed Best and Brightest.

(Read More…)

While the political battle lines over increasing CAFE standards are being drawn in Washington, with the industry taking on both environmentalists and itself, a line of analysis that’s been around since 2009 is exacerbating the industry’s internal divisions over the impact of CAFE increases. A two-year-old University of Michigan study has been exhumed and expanded upon in a new CitiGroup report which makes a bold claim: CAFE will actually improve both sales and profits for the industry. And with Detroit taking the lead in resisting CAFE increases, one might think that the industry’s “turncoats” like Toyota and Hyundai, who have made marketing-led decisions to support CAFE increases, would be the main beneficiaries of these reports. Not so. According to this battle-line-confounding analysis, the biggest beneficiary of CAFE increases will be… Detroit. Madness you say? You may well be right…

(Read More…)

The rise of the Chinese auto market, which only surpassed the US to become the world’s largest in recent years, has drawn considerable attention from China-watchers and industry insiders alike. China’s rampant sales growth has paid huge dividends for firms who gambled on the Chinese market, in turn spurring more investment as every global automaker scrambles for access to China’s rapidly-developing market. As a result of several years of this gold rush mentality, everyone is now looking for China to stumble, to show the first signs of a bubble ready to burst.And over at Forbes, Handel Jones (the author of Chinamerica: The uneasy partnership that will change the world), thinks he may have found these first signs of slowdown in China’s auto production numbers.

(Read More…)

With VW wading into the budget roadster segment with its forthcoming BlueSport mid-engine roadster, it seems that Kia wants in on the action as well. Reports are surfacing in Europe and the US that the Korean automaker is making good on Peter Schreyer’s threats, and is developing its first roadster since it bought up the tooling and IP for Lotus’s front-drive Elan, which it sold in Korea between 1996 and 1999.
(Read More…)

Speaking at Nissan’s Smyrna, TN electric car factory, Transportation Secretary Ray LaHood noted that his staff is working with Congress to make federal tax credits for plug-in car purchases available as a rebate on the dealer level, saying

We’d like for people to get a $7,500 rebate on the day they buy the Leaf. We’re doing a lot of talking about it. When you give people that incentive to buy a battery-powered car, they’ll do it. We know these incentives help.

Speaking to Automotive News [sub], LaHood even went as far as to argue that the new direction for the tax credits, which were previously only claimable when filing taxes, would be successful for the reason that it would make the credits more like the Cash For Clunkers program. Apparently LaHood has completely forgotten how riddled with waste, inefficiency, fraud, confusion, delays, unintended consequences and all-purpose madness that program was. And that’s just scraping the surface. Foolish as it is to subsidize vehicles during the “fleecing the early adopters” phase of a new technology rollout (perhaps we should be saving stimulus for the inevitable “trough of disappointment”?), making those credits available at the dealer level is even worse, increasing the hype and incurring C4C-like downsides along the way.

Pickuptrucks.com reports that you may not have to wait for Mahindra to work through its legal issues to get an efficient diesel-powered pickup, as the DOE has funded development of a four-cylinder Cummins diesel engine which is being demonstrated in a Nissan Titan. According to the report

Cummins refers to the engine by the codename “LA-4” with a 2.8-liter displacement (170 cubic inches). Initial power figures on the engine dyno have the mule test engine producing 350 pounds-feet of torque at around 1,800 rpm. A chart in the presentation shows targeted power levels to be approximately 220 horsepower and 380 pounds-feet.

The engine is likely a derivative of the four-cylinder ISF architecture that Cummins builds overseas, with 2.8-liter and 3.8-liter displacements. The overseas 3.8-liter is rated at 168 horsepower and 443 pounds-feet of torque…

To meet U.S. clean-diesel standards, the 2.8 would use diesel exhaust fluid to scrub nitrogen oxide emissions, like Ford and GM use today in their heavy-duty diesel pickups. It would also feature a so-called passive NOx storage system that would capture and hold NOx during cold starts, releasing the gas when temperatures rise to levels of max efficiency for DEF. The passive system would save fuel used today to jumpstart NOx scrubbing when the system is cold.

The upshot? 28 MPG combined, according to pickuptrucks.com. Given the discrepancy between EPA fuel economy numbers and the CAFE method, that means this engine could make a Titan (which gets 13/18 MPG EPA with its stock V8) more than compliant with the 2015 30 MPG truck standard. And because the DOE spent only $15m, this probably qualifies as one of the more promising government fuel-economy improvement programs in some time. After all, improving truck efficiency is one of the toughest aspects of CAFE compliance… and if a Titan can get nearly 30 MPG combined (about the same as current four-cylinder family sedans), the government’s $15m just bought it a crushing blow to the industry’s anti-CAFE carping.

When Chrysler Group Design boss Ralph Gilles said yesterday that “nothing has changed from the Five Year Plan,” I failed to mention one of the issues that made his statement less than entirely accurate: the planned “mid-sized pickup” which was supposed to debut as a 2011 model. The planned unibody pickup was labeled as “under consideration” at the time, and since nobody has mentioned it since (and because Honda’s Ridgeline has been losing sales), most industry watchers seemed to think the idea was stillborn. Not so, reports wheels.ca. Citing insiders and suppliers briefed on the program, Wheels says the new truck will be built in Windsor, Ontario on Chrysler Group’s minivan platform as

an insurance policy that the plant will continue on three shifts at full capacity.

Which isn’t as thrilling a justification as, say, “the compact pickup market has been shamefully neglected for years, and rising gas prices and CAFE standards make well-developed, modern, fuel-efficient pickups a no-brainer,” but it will have to do. And since Chrysler is reportedly targeting only 15k-20k units per year, it’s not particularly surprising either. In honor of Chrysler’s return to front-drive, compact pickups, be sure to check out the Curbside Classic on its progenitor, the Dodge Rampage.

Fresh on the heels of today’s release of Opel Zafira pictures, Buick has confirmed to Automotive News [sub] that rumors of a rebadged Opel Astra for the US market are indeed real. But wait, you say, isn’t the Buick Verano just an Astra sedan? Perhaps… but since there’s no Astra sedan to rebadge, that leaves only three choices for this future Buick Astra: the five-door hatch, the three-door coupe-hatch or the “Touring” wagon. C&D would like to see a 300 HP Buick Hot Hatch to come in the form of the Astra GTC OPC, although we’re skeptical that Buick will offer 300 HP in a car smaller than its “detuned image changer,” the Regal GS.  If the Meriva represents the “Baby Enclave,” it’s possible there’s room for a C-Segment wagon, but the rumors insist that younger buyers are the target for this US-market Astra. So, chromed-out five door? Detuned “Skyhawk” GTC coupe? Gentlemen, start your speculation…

From “promisingly awkward” mule to multiple styling “concepts” we’ve had plenty of looks at the many possible shapes that Toyota is considering for its forthcoming “FT-86” rear-drive budget sports coupe. But now, with Toyota finalizing the production look of its eagerly-anticipated sports coupe, we’re finally getting a good look at the FT-86’s production-ready proportions, if not its approved styling cues. And by the looks of it, it’s a clean, conventional coupe with just enough of a convention-defying low-hood look (enabled by Subaru’s boxer engine) to avoid looking like a scaled-down Z. In fact, this car’s ability to appear conventional yet subtly distinctive seems to be rooted in its small, rear-drive proportions rather than any one styling feature we’ve seen on a concept. Given the inherent challenge of building sportscars that offers broad appeal as well as enough distinctiveness to get enthusiasts fired up, this looks like a good sign for the FT-86’s future.

Saab has received wire transfers of around €30m from both Gemini Investments and the Chinese dealer group PangDa, reports Aftonbladet, and it will be using that money to pay off its supplier debts which could use up most of that cash (Saab’s supplier debts are estimated by DI.se at between two hundred and four hundred million kroner, or as much as €44m). Leaving aside the issue of how that money was able to be transferred from China to Sweden in a matter of two days (more on that from Bertel here, the short version: the deal should need Chinese government approval), there are serious questions about Saab’s ability to restart production. After all, the €30m from Gemini is debt, while Saab owes PengDa for an undisclosed number of vehicles that it bought with its investment. Unless those cars are sitting somewhere waiting to be shipped, Saab will have to pay off its suppliers and then build the cars on what is essentially credit from PengDa. Meanwhile, that’s not the only demand on Saab’s finances and attention, as CEO Victor Muller is planning on taking a bonus of over half a million dollars, a decision that is creating fresh problems of its own.

(Read More…)

Not to cut speculation short or anything, but the answer is “probably not.” GM has already said that its “Baby Enclave” will be built at its Orion Township plant, alongside the new Aveo-replacing Chevy Sonic, which indicates a subcompact (Gamma II)-based MPV will be Buick’s next vehicle. Add to that the fact that GM has said the “Baby Enclave” would bear the styling cues of the Buick Business concept, which the Opel Meriva more closely resembles, and it’s clear that Buick’s first MPV will be the suicide-doored subcompact. But, since Buick won’t bring the Chinese-market GL8 minivan stateside, this compact, Astra-based mini-minivan could be coming to a Trishield dealer at some point… in fact, some might even argue that a compact MPV would do better as a Buick than a subcompact one (even with suicide doors). Either way, the new Zafira will be crucial to Opel’s attempts to right its sinking ship over the next several years.

Pop quiz: when does an eight-month-old story generate a huge amount of interest? When it’s got political overtones, of course. And what better way to milk the last dregs of bailout resentment than by telling a story that seems too bizarre to be true: Cadillac is a “proud” chief sponsor of a Chinese Communist Party-produced film entitled “The Birth of a Party” (or “The Great Achievement of Founding the Party” depending on the quality of your translator). The story started last September, at ChinaAutoWeb.com, and was recently revivified by the Washington Times, Commentary Magazine, and Big Hollywood. Our main interest in the story has to do with its lessons about the rise of China, that country’s tortured relationship with luxury goods, its foreign (from the American perspective) political economy and Cadillac’s continued need for better momentum in China… but clearly others are more interested in it for different reasons.

The political point seems to be that government money is being funneled to the Chinese Communist Party via General Motors, an accusation that, though shocking, doesn’t hold up well to scrutiny. After all, nearly anyone doing business of any kind in China ultimately supports the political and economic structure created by the Chinese Communist Party, legitimizing it and lining its pockets. And surely nobody is suggesting GM abandon China altogether, thus eliminating its greatest opportunity for growth. Meanwhile, as the Freep helpfully points out, Caddy needs all the help it can get in China: without a single vehicle in the luxury car top-ten, Cadillac needs to be aggressive in marketing to China. Still, from a PR perspective, Cadillac clearly has a line to walk here… perhaps it should look for less visible (and risible) ways of building up guanxi (connections) with the powers that be in the world’s largest market for cars.