Posts By: Edward Niedermeyer

By on February 14, 2011

Infiniti will show this C-segment coupe-hatch, named Etherea, at the Geneva Auto Show, as a glimpse at the brand’s 2014 time-frame compact, front-drive offerings. But, for those of us who grew up in the 80s, the Etherea’s name is at least as likely to recall the distant planet that served as the home of He-Man’s twin sister, She-Ra. But rather than serving as the battleground between the Rebellion and the evil forces of Hordak, the Etherea is a new opportunity to highlight the hybrid drivetrain from the M35h as well as “innovative access arrangements” that Infiniti is keeping secret for now. Which is probably for the best… apparently She-Ra was a Panther girl

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By on February 14, 2011

OK, OK, this is the Lancia-branded version of the Chrysler Ypsilon… and even when it gets a Chrysler badge, it won’t be coming to the United States (at least not in this iteration). Still, this is a huge moment for Chrysler: after all, the brand has not offered a legitimate subcompact car since the Omni/Horizon shuffled off the mortal coil some 21 years ago. And like the Simca-derived L-Platform subcompacts, the Ypsilon is thoroughly continental under its badging: the Fiat 500 platform underpins this hatch, though it has been stretched slightly to accommodate four doors. Performance will be modest as engine sizes range from 900cc to 1.3 liters, but with leather and Alcantara interior options, the first mini-Chrysler in over 20 years should offer a stately cabin for a subcompact. But will this be the Fiat-produced, B-Segment Chrysler that we’re expecting in 2013? And if so, will they change its name to Horizon?

By on February 13, 2011

For years now, the compact pickup market has withered away due to the chicken-and-egg dynamic of poor sales and little investment in new models. Ford’s Ranger and Chevy’s Colorado are scheduled to die off this year, and with the new global Ranger not coming to America, Mahindra’s endless delays and weak mileage ratings, and no signs of other small truck investment, the segment looks ready to die. But, as it turns out, 2011 might not be the year that kills the compact pickup: tflcar.com reports from the Chicago Auto Show that

a well placed source within the company is that Chrysler will announce a new entry-level light pickup this year.

Since Fiat took over at Chrysler, there have been rumors of a Ram-branded unibody pickup… but rumors of a Jeep Wrangler-based pickup have been rampant as well. Whatever format a new Chrysler compact pickup comes in, here’s hoping it inspires other companies to bring out a rugged, fuel-efficient, compact pickup for the US market. You paying attention GM?

By on February 13, 2011

Bloomberg seems to think GM is heading back towards bad habits, reporting

General Motors Co. is offering to waive the last three payments on existing leases if holders buy a new car, adding an incentive onto deals that last month exceeded offers made by rivals.

The promotion began this month and is valid on most models with leases that expire between now and Aug. 31, according to the company. GM raised incentive spending in January by 16 percent to an average of $3,663 per vehicle, the highest among major carmakers, according to researcher Autodata Corp. GM sales outpaced the industry that month.

GM said in a video presentation for its initial public offering in November that it intended to offer fewer incentives that crimped margins and created an impression that price was the main selling point for GM vehicles. Early-return leasing deals may conflict with the that pledge, said Jessica Caldwell, an analyst at Edmunds.com.

“I hope they’re not walking down that road,” said Caldwell….

Given GM’s decision to release less incentives data, the signs do seem to be piling up. But, says Chevy marketing VP Rick Scheidt

I am not seeing any internal behavior that suggests we have gone back to old ways. It’s still way too close to the bankruptcy for us to be sliding back into bad habits. We know everybody’s watching.

(Read More…)

By on February 13, 2011

Ever since Mercedes released its CLK back in 1996, Mercedes has offered one premium coupe slotted between its E and C-Class sedans. Sure, it offered the unloved C-Class Sportcoupe (aka CLC) for a few years in the US as an attempt at an entry-level Mercedes, but nobody really seemed to notice. Otherwise, between there and the none-too-cheap CL, Mercedes offered one coupe, known as the CLK (not counting the CLS “four door coupe”). Now, however, Mercedes has moved in a new direction, offering an “E-Class Coupe” and a “C-Class Coupe,” the latter of which will debut shortly at the Geneva Auto Show. The strange part: they’re both built on the C-Class platform. Mercedes, it seems, has learned an important lesson: when it comes to selling cars, it’s what’s on the outside that counts.

By on February 13, 2011

Via the excellent lawbloggers at The Volokh Conspiracy comes news of a decision by a California appellate court in re: State vs Xinos which finds that the data recorded by a vehicle’s Event Data Recorder or “black box” is protected by the fourth amendment. The ruling covered a case in which police used EDR data to charge the driver in a fatal crash of vehicular manslaughter, and under appeal, the ruling was handed down that

We do not accept the Attorney General’s argument that defendant had no reasonable expectation of privacy in the data contained in his vehicle’s SDM. The precision data recorded by the SDM was generated by his own vehicle for its systems operations. While a person’s driving on public roads is observable, that highly precise, digital data is not being exposed to public view or being conveyed to anyone else. . . . We conclude that a motorist’s subjective and reasonable expectation of privacy with regard to her or his own vehicle encompasses the digital data held in the vehicle’s SDM.

And, according to Volokh

the computer data is in the car, not outside the car, so the legal standard that governs access to the data probable cause but not a warrant

Given trends towards ever more storage of vehicle telemetry data, this is a heartening development for motorists and privacy activists… but don’t be surprised if the issue ends up in the Supreme Court. [Hat Tip: TTAC commenter fincar]

By on February 13, 2011

Having heard that the littlest Land Rover will go by the name “Range Rover Evoque,” Autoblog caught up with the Jaguar-Land Rover’s communications team at the Chicago Auto Show, and asked whether Tata’s luxury group would be trying to differentiate the Range Rover brand. Their answer?

Dealers will add Range Rover branding to their towers. the issue is in flux right now.

They will? This decision forces the question: what differentiates a Land Rover from a Range Rover?

Land Rover is more utilitarian, Range Rover is the top end of luxury. You don’t lose any capability with the Range Rover, but the Evoque especially is about unabashed on-road and urban driving.

There you have it. Certainly, “Land Rover Range Rover Sport” is an awkward formulation, but is “Range Rover Range Rover Sport” really any better? Is JLR making a worthwhile distinction between brands, or is it simply adding to America’s auto brand clutter?

Range Rover is apparently fairly serious about moving upmarket as Autocar reports it is about to announce a $200k+ “Ultimate” special edition. Plus, a new aluminum-platformed Range Rover is under development which will reportedly lose nearly one thousand pounds compared to the current model. More legroom and an interior featuring “the kind of lavish materials and design typified by Bentley” are said to be on tap for the new model. In short, it wounds like Range Rover is definitely headed upmarket… but where does that leave the Land Rover models?

By on February 12, 2011

Though the the impact of nationality on the auto industry may be fading, the issue couldn’t be more central for Sergio Marchionne and his Fiat-Chrysler Empire. Having accepted aid from both the Italian and American governments, the future merging of Fiat and Chrysler raises a delicate question: will a merged Fiat/Chrysler be an Italian or American firm? When Marchionne suggested that the Fiat-Chrysler alliance could be headquartered in Detroit, Italy erupted in recriminations. The Italian government called Marchionne onto the carpet to explain himself, even as critics lashed out saying

The government is moving too late, but better late than never. Marchionne is more oriented strategically toward the U.S. than Europe

And sure enough: Fiat restated its commitment to investing some $27b into Italian production, but as AFP reports

the question of whether Fiat would remain based in its birthplace of Turin remained unclear, with local officials saying it had been put off for three years and would depend on the company’s performance.

But, while American and Italian stakeholders bicker over the “national character” of a merged Fiat-Chrysler, the proposal establishing four headquarters in Turin, Detroit, Brazil and “somewhere in Asia” points to the real issue: Fiat-Chrysler must orient itself around its markets, not any national corporate character. The longer the divide between Italy and the US is played up, the more Fiat-Chrysler runs the risk of developing a dysfunctional corporate culture like the DaimlerChrysler “marriage of equals.” It’s just too bad that, by tying itself up with the governments of the USA and Italy, Fiat allows the “national character” question to take such prominence.

By on February 11, 2011

Two years ago, Nissan sent a bizarre little beach buggy of a concept, called the Qazana, to the Geneva Auto Show. At the time Autoblog’s Chris Paukert called the concept that would become the Nissan Juke “so bizarre it almost looks French”… but little did anyone know the French would eventually claim the Juke’s heritage. Now, Renault, the French leg of Carlos Ghosn’s Renault-Nissan alliance is bringing their own interpretation of the compact-coupe-ute with this, the Renault Captur. Will it being searing eyeballs on the French street any time soon? Ghosn only knows…

By on February 11, 2011

Bloomberg reports

GM plans to pay bonuses to most managers equal to 15 percent to 20 percent of their annual salary and as high as 50 percent to less than 1 percent of its 26,000 U.S. salaried employees, said one of the people, who asked not to be named revealing internal plans. Bonuses for Chrysler’s 10,755 salaried workers will average about $10,000, with a small group getting as much as half of their salary, one of the people said.

And with GM and Chrysler heading into contract negotiations with the UAW, this is not going to be winning the manufacturers many friends among the union.

“The union is going to be very angry about this,” Gary Chaison, a professor of industrial relations at Clark University in Worcester, Massachusetts, said in an interview yesterday. “If these kinds of bonuses are paid to salaried workers, then the union’s demands will increase, knowing management can’t claim an inability to pay.”

But wait, isn’t GM giving hourly workers the biggest bonuses in company history? What’s going on here?

(Read More…)

By on February 11, 2011

Reuters reports:

Trading in the shares of China’s top carmaker SAIC Motor Corp will be suspended from February 14 pending a material corporate announcement, SAIC said on Friday.

SAIC, the Chinese partner of General Motors and Volkswagen, and owner of the MG Rover plant in Britain, said it has been notified by its holding company SAIC Group that it is working on a major plan involving SAIC and discussions over the proposal are continuing, it said in a filing with the Shanghai Stock Exchange.

SAIC said it expects to make an announcement regarding the plan in five trading days following the trade suspension.

SAIC owns about one percent of GM, it is the majority owner of its Shanghai-GM joint venture and controls GM’s Indian-market operations… in fact, the last time SAIC suspended shares this way was when it took over GM’s Chinese and Indian ventures. So, what’s next? The mind boggles…

By on February 11, 2011

Two years ago, when Kia Souls were just starting to arrive on dealer lots, the Peter Schreyer-styled mini-MPVs looked like “visitors from another planet” on lots filled with old-style Optimas, Spectras and Rios. Today, the Soul fits in fine with its newly-styling siblings… now it’s the old, dumpy Rio’s turn to feel out of place. Along with the frumpy Sedona, the littlest Kia reminds visitors to the Kia lot that once upon a time, not too long ago, Kia’s cars really were an automotive last resort. It’s not that these are fundamentally bad vehicles, but compared to the pop and sizzle offered by their new siblings, they simply aren’t trying to be more than basic transportation. But now, with a new global Rio set to debut at the Geneva Auto Show, even the littlest Kia is getting in on the family’s new flair for visual drama.

(Read More…)

By on February 10, 2011


Chrysler and Fiat CEO Sergio Marchionne has given Forbes’ Joann Muller what I believe to be one of his best interviews since arriving on the US scene. In it, Sergio dishes on everything from the bailout (“I risked everything – I got 35 percent of something that was worth nothing”), to Chrysler’s 2011 sales target (“a very, very tough uphill battle”), to its new product

I couldn’t have done more from a product standpoint than I’ve done. I mean you know, I tried every trick in the book that I knew and I invented some, but you know, 16 products in 12 months – at least that part of it was a record. The rest of it is to be proven.

But the strangest revelation from Sergio is that Alfa Romeo’s future success will be, in a manner of speaking, “Imported from Detroit.” Read the whole thing over at Forbes, or hit the jump for Sergio’s vision for his red-blooded Italian brand.

(Read More…)

By on February 10, 2011

The WSJ reports that Mexico is emerging as one of the big winners the the automotive sector recovery, as Edward Solis, President of the Mexican Automobile Industry Association crows

We have a number that historically we’ve never had before. Fourteen of every 100 vehicles sold in the U.S. are Mexican-made in the month of January. Obviously, we can’t say that it marks a trend, that it’s going to continue like that, but it is very interesting that in our principal market we are growing in such a dynamic way.

Full-year US market share for Mexican-assembled vehicles was 11 percent for 2010, but with Hecho-en-Mexico cars like the Fiesta and new Jetta coming on strong, expect that to keep growing. Just don’t tell the hosts of Top Gear!

By on February 10, 2011


Is the auto industry headed for a price war? Hyundai Motor USA CEO John Krafcik seems to think so, telling Reuters

I think we can officially say that a price war broke out in the industry. There is apparently a lot of pressure to deliver sales results. I would call this a step backward for the industry. This is short-term thinking in a long-term process that hurts manufacturers and consumers.

Krafcik says GM kicked off the rush for increased volume by cutting prices in January, and that Toyota (which  has increased its incentives by 37.5% since last January, according to TrueCar) “quickly” responded by matching The General’s price cuts. Honda, Nissan and Chrysler have also kept their incentives high, and Chrysler has told Automotive News [sub] that it plans on increasing sales by 45% this year. Says Krafcik

We’ll see if others decide to follow. It’s certainly not in our plan right now.

Krafcik has a point: though sales have recovered over the last year as the economy has come back from the depths of recession, industry-wide incentive spending is up 1.3% in the last 12 months. Rather than taking advantage of the economic recovery to bring incentives down and transaction prices up, automakers appear to be focused entirely on volume. That’s certainly the message GM has sent by announcing that it would no longer release its incentive data. And, as Krafcik points out, the industry has already suffered mightily from such short-term, unsustainable thinking… but not everyone shares his concern.

(Read More…)

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