Can Saab overcome a miserable couple of years that saw global sales plummet as the Swedish brand was kicked out of the GM kingdom? If so, you will be seeing lots of this, the first US-market ad from Saab since the brand’s sale to Spyker was completed. Meanwhile, with Volvo in rebuilding mode as well, seeking to maximize its marketing spend per vehicle, America had better get used to the Swedish turnaround storyline. And, for the sake of these two marginal brands, consumers had better respond to their heritage-heavy pitch.

Via Autocar come these first pictures of a long-rumored entry-level Maserati sedan testing in Europe with Quattroporte-based bodywork. The British buff book reports

Despite looking similar to the Quattroporte at first glance, the mule’s identity is given away by its shorter wheelbase, smaller front brakes and ill-fitting windscreen. The mule also sports just one exhaust pipe on each side at the rear, instead of the brace that appear out of the bumper on each side of its bigger brother.

The €55k Maserati sedan is said to be based on the platform used for Alfa’s 166 replacement, which is widely rumored to be the same Chrysler LX platform that currently underpins the 300 and Dodge Charger. However, because the LX platform’s wheelbase is only .6 inches shorter than the Quattroporte’s 120.6 inch measurement, it’s perhaps more likely that this BMW M5-fighter is based on the shorter LY variant, which has a 116 inch wheelbase. In any case, the global success of the Quattroporte makes this entry-level model of special interest… especially if Maserati can spin a Chrysler-based platform into sales gold.

How did Chrysler do last year? It all depends on how you slice the numbers, isn’t it? As warned, Chrysler’s Q4 was a bit of a letdown, as net revenues dropped from $11.018b in Q3 to $10.763b, resulting in a $199m Q4 net loss. Interest expenses continue to be a major drag on Chrysler’s performance, costing $329m in Q3 and a whopping $1.228b over the course of the year. Cash dropped by nearly a billion dollars from Q3 to Q4, ending the year at $7.347b (not counting $2.3b in undrawn government facilities). Chrysler nearly hit the 1.6m worldwide sales number touted in its Five Year restructuring plan, as well as the 1.1m US-market target (although fleet mixes appear to have been higher than anticipated). Chrysler also hit its goal of $40b+ in net revenues and exceeded Operating Profit and EBITDA projections, but as the slide from Chrysler’s Q4 financial presentation [PDF here] shows, Both debt (which will likely be restructured this year to reduce costs) and depreciation/amortization have killed Chrysler this year… which is why EBITDA and Modified Operating Profit take the top billing in Chrysler’s financial reporting.

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125 years ago yesterday, Carl Benz was granted the first patent for his Motorwagen, marking the birth of the automotive industry, as well as the company that would become Mercedes-Benz. Both have come a long way in the last century and a quarter, and the mind boggles at what might be in store for the next 125 years. Especially if they keep building the kinds of cars that outshine everything else on the road for decades after they’re built.

Well, the problem isn’t so much that compact cars aren’t youthful… it’s that the buyers of compact cars are surprisingly un-youthful. The C-Segment, compact cars in the class of Honda’s Civic, Toyota’s Corolla, Ford’s Focus and Chevy’s Cruze, are typically thought of as “Kid Cars,” or first-time automobile purchases for younger buyers. That stereotype may still be true, but if it is, the young buyers aren’t actually buying the cars. This week, Ford’s executive in charge of launching compact cars like the forthcoming 2012 Focus turned my perspective on the C-Segment upside down by telling me that Ford’s research showed that the average age of a compact car buyer was… get this… 57 years old. Given that TTAC has questioned the viability of the Buick brand for having an average buyer age in the low-to-mid 60s, it’s worth considering the reasons for the surprising age of C-segment buyers. And while we’re at it, let’s throw another stereotype on the fire, namely the old chestnut that compact cars are “basic transportation” for folks who can’t afford a car in the next class up. According to Ford’s data, 50 percent of C-Segment buyers come from households making $75,000 per year or more.

I wish TTAC had more of this kind of demographic data to share, so we could track changes in compact car-buying demography over time, but it seems fairly clear that the compact class is attracting older, more affluent buyers than it once did. So we want to know: how do you interpret these trends? Will older, richer buyers continue to downsize, or is this a short-term phenomenon driven by gas prices and economic recession? Meanwhile, what impact will this shifting demography have on compact cars themselves?

During the government’s bailout of General Motors, the UAW agreed to a number of concessions, including management’s ability to use “Innovative Labor Practices” in order to build a fuel-efficient subcompact car in the US. As a result, the 1,600 workers at the firm’s Lake Orion plant had a choice: the 800 most senior workers would return at the $28 “tier one” wage, while another 500 workers would be able to return only if they accepted a 50% pay cut, pushing them into the union’s “second tier” of wages. Workers forced into the tier two, which typically applies only to new hires, were not allowed to transfer to other Michigan plants, and could neither vote on the agreement, nor strike because of it. After all, the bailout’s green-tinged sales pitch meant that building a subcompact in the US was a politically necessary move, even if it went against every UAW principle… which is why it’s awfully ironic that the safety valve for this deteriorating situation is a factory building trucks.
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Via designauto.fr, come these first pictures of Fiat’s Chrysler-cum-Lancias, the Thema (Chrysler 300) and Flavia (Chrysler 200). But are these rebadges worthy of the Lancia name? Hit the jump for the context necessary to answer that question…
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Regular TTAC readers know that there’s more to a successful performance from an automaker than pure volume alone. Average transaction prices, market share, and incentives all play a role in translating production numbers into profits. Luckily, our pals at TrueCar  have broken all that lovely data down, and they’ve sent over the numbers behind Ford’s recently-announced $8.3b profit, the Blue Oval’s best performance in over a decade. And, as you can imagine, a performance like that requires not only a hefty increase in volume (up nearly 20% on the year) but also improvements in market share (up 1.23%), and transaction price. Yes, incentives stayed stronger than they perhaps needed to be, but they now make up a lower percentage of the average transaction price. And that, ladies and gents, is how you make a $5.4b pre-tax operating profit in the US market alone [Q4 and historical data after the jump].

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Holden may be rightly proud of its competition-creaming new Caprice Police Pursuit Vehicle, but Phoenix’s Finest just have one question: how often do you have to change those tires? And, as TTAC’s commentariat pointed out during the Michigan State Police’s trials, maintenance costs are nearly as important for police fleet buyers as pure performance. So, though the Caprice might out-hustle and out-interior-size its police-duty competition, the fact that only a limited number of civilian Zeta-sedans will make it to American roads means parts and maintenance won’t be as cheap or easy as the old Panthers. And because it hustles so nicely, those tires won’t be the only thing that will inevitably wear out. Still, it’s probably safe to assume that at least a few police departments will be seduced by the Caprice… so you’d better start burning that grille into your memory banks.

I was not the only journalist to feel a little let down by Volkswagen’s latest Jetta. After building a name in the US by offering classy European-style appointments without charging European sports-sedan prices, the latest Jetta is, well, just a little too American. VW insists that the stripped-out interior helps bring the Jetta’s pricetag down to American expectations, but it’s not at all clear that competing on Toyota’s turf will be a winning strategy for the German automaker. And it certainly won’t work in Europe, where VW offers the same Jetta with an improved interior, the multilink rear suspension offered stateside only in GLI trim, and more options like multi-zone climate control. But will US-market consumers ever have the option of buying a European-spec Jetta with all  of its upmarket features?? When asked by InsideLine, VW’s Jetta boss Frank Donath answered

There is the strong chance that the midlife Jetta for North America could get all of the European features. It depends on sales performance.

VW has played this game before, hinting that the Amarok pickup truck might come to the US if consumers buy 100k units. In this case, there’s a better chance of VW having to make good on the offer, as consumers could well buy quite a few Jettas. But then, if Americans are buying lots of the cheap US-style Jettas, why bring in the Euro model? Let’s face it: the days of old-style Volkswagens is as good as over. At least until it brings the very European Scirocco over.

The Fiat 500 faces an interesting challenge in the US Market. Yes, it offers the fashion-nugget flair of a MINI Cooper at a lower price… but it’s also smaller, less powerful and not all that much more efficient. Automotive News [sub] reports that the new 500, which offers 101 HP from its 1.4 MultiAir engine, will be rated at 38 MPG Highway/30 MPG City with a manual transmission, and 34 MPG Highway/27 MPG City with an automatic. Compared to a 120 HP MINI Cooper, the manual 500 enjoys a 1 MPG advantage on both city and highway ratings, but with the popular automatic transmission, it actually gets worse mileage than the 36/28 MPG slushbox Cooper. Why the big discrepancy in the 500’s manual-versus-autobox efficiency? Probably because the European-spec 500 doesn’t offer an automatic, which was added to the vehicle (along with retuned suspension and more sound deadening material) just for the US market.

So, while the 500 starts some $5k lower than the MINI, and it’s not all that much smaller on the inside (front legroom is down about an inch compared to the MINI, while rear headroom is short by some 2.5 inches… but the 500 wins on other measures), the efficiency with an autobox leaves quite a bit to be desired… especially for a 100 HP, 98 lb-ft car.  And with the Fiesta offering a less flashy but larger 40 MPG option (with a self-swapping gearbox) at a similar price point, the 500 has some serious charming to do.

Volvo has come to the kind of conclusion we haven’t heard from an automaker in some time: it’s selling too many models. With nine models currently on the market, the Chinese-owned Swedish automaker has opted to cut that number by “five or six” nameplates, and will rebuild its US lineup around its XC60 and XC90 crossovers, and S60 sedan. As a Volvo spokesman explains to Bloomberg

We have to focus on the key segments with significant volume potential.

The first model to go from the lineup will be the V50 station wagon, but from there it’s anyone’s guess. To help kick off the speculation, we present the graph above, charting the recent sales fortunes of the nameplates that Volvo is considering for death. Since the one model on the chart that has already been marked for death (the V50) has the lowest volume, it might be safe to guess that the next model up the volume ladder (C30) will be the next to die. From there, it’s a lot more complicated. Last year the S40 moved 5,623 units, the C70 sold 5,263 units, the XC70 sold 6,626 units and the S80 sold 7,724. In terms of sheer volume, there’s reason to kill every one of these nameplates… but strategically there’s just as much of an argument for investing in any one of them. Too bad there’s only marketing resources for “five or six” nameplates. So, which models would you kill?

With California’s Air Resource Board and the EPA set to unleash new 2016-2025 CAFE standards, the Alliance of Automotive Manuacturers, which represents foreign and domestic automakers, is lashing out, telling Automotive News [sub]

We all want to put the most fuel-efficient vehicles as possible on the road, but for the 2017 rulemaking, policymakers still need to gather and analyze much data to determine the maximum feasible fuel economy standards that avoid negative impacts on affordability, safety, jobs and vehicle choice. No one knows what the 2025 target should be yet, and the data needs to drive the rulemaking.

But not everyone in the industry is on board with the AAM’s CAFE-skepticism. Already, Hyundai Motors USA CEO John Krafcik tells TTAC his firm plans to “Overcomply” with the coming CAFE standards, and now Toyota is joining Hyundai in breaking ranks, with Jim Colon, VP for Product Communications saying

The administration is engaged. That’s the direction Toyota is already going. Whatever goal they establish, Toyota will be prepared to meet. If it’s 62 miles a gallon, we’ll be able to achieve that.

IGA Automobile, a new closed-end partnership fund, is planning on investing $150m into “a collection of 20 to 40 trophy marque vehicles with distinguished race or ownership histories” which it claims will appreciate some 15 percent over the next seven years, according to the Detroit News. Though collective buying of super-exotic cars is not new in itself, IGA Automobile fund Director Lancaster claims

This is the first classic-car fund that’s purely for financial returns, rather than passion

The fund, which is advised by Pink Floyd drummer and car nut Nick Mason, has identified several “potential acquisition targets” including the Ferrari 250 GTO, Aston Martin DB4 Zagato, Ford GT40, McLaren F1, Shelby Daytona Coupe and Porsche 917. And, since investors in the fund will be shelling out a minimum of half a million dollars to buy cars that they won’t even be able to keep in their own garage, the investment had better have a chance of making some money. And the fund’s managers think they can make that pitch, as

The Hagerty’s Cars That Matter “Blue Chip” Index, based on the values of the 25 most collectable postwar vehicles, has increased 67 percent from September 2006 to the end of 2010… The Historic Automobile Group International (HAGI) Top 50 index of exceptional classic-car prices was up 6.6 percent in 2010, lower than its average annual growth of more than 12 percent from 2003-08.

That’s better than plenty of investments did over a similar time period… but luxury-goods speculation still has a shaky track record. Besides, doesn’t it seem just a little bit wrong to treat these epic classics like a bond certificate, keeping them stashed away in a vault somewhere? Here’s hoping there’s room in the business plan for some kind of museum.

Rep Sander Levin (D-MI) has introduced legislation which would increase the cap on consumer tax credits for plug-in electric vehicles.The current subsidy allows consumers to take a $7,500 taz credit, but caps the number of qualifying credits at 200k per manufacturer, but Levin’s bill would raise that to 500k units. Said Levin in a statement

Green vehicles represent the vanguard of automotive innovation, but they have to be economical for consumers and profitable for manufacturers. Raising the cap on this credit will help carmakers reach the demand and production scale necessary for long-term viability.

To which, his brother Senator Carl Levin, adds

The U.S. auto industry is poised for a technological explosion that promises to fundamentally change transportation here and around the world. But if we fail to support this revolution, workers in China, India, South Korea and our other competitors will build these vehicles instead of American workers.

The call to raise the cap for EV consumer tax credits was first publicly raised by GM’s Tom Stephens, who argued that 200k units was inufficient government support to keep the Volt viable until the second generation comes out. At the time, Rep Debbie Stabenow argued that credits should be “front-loaded” and deducted from the price of the vehicle at the dealership, but that proposal seems to have fallen b the wayside.