Surf on over to dodge.co.uk, and you’ll find that the only vehicle being offered for sale is the Journey crossover. Look a little closer and you’ll find that Dodge has announced new electric vehicles, an online reminder of the embarrassing bailout-era ENVI project which has since been expunged from Chrysler’s corporate history. Given this sorry state of affairs, is it any wonder that Dodge is getting the heck out of Dodge, er, Old Blighty?
(Read More…)
When TTAC’s Tal Bronfer caught a D-segment Hyundai station wagon brake testing in Austria’s Groβglockner High Alpine Road, we concluded that the “Sonata wagon” was
not a simple sheetmetal job
It turns out that was something of an understatement.
Despite being introduced to the US back in 2006, sales of Nissan’s Versa are hardly slacking with age. Sales of the Versa have increased every year since its introduction except for last year, when volume dropped by about 2,000 units, and this year the subcompact sedan/hatch has already set a new annual sales record. Even the newer, arguably better-looking Kia Soul hasn’t been able to unseat the Versa from its perch as king of the subcompacts, having sold only about 60k units this year to the Versa’s 89,500. But despite this continued success, Nissan is replacing the slightly geeky-looking Versa with this, the 2012 Nissan Sunny, which has just been unveiled at the Guangzhou Auto Show in Southern China.
I will be appearing on Fox New Channel’s Fox and Friends program tomorrow at 8:40 am Eastern (5:40 Pacific) to discuss my latest NY Times Op-Ed, the auto bailout, and Detroit’s fuel economy issues. And if none of that interests you, be sure to tune in anyway for a chance to see what TTAC’s Editor-in-Chief looks like just moments after rolling out of bed.
Renault’s “We Live In Modern Times” series of ads for its Twingo subcompact were a favorite at TTAC’s “Shameless Sexual Exploitation Weekend,” but it’s this Italian Twingo ad that has the French automaker back in the news. Italian Prime Minister Silvio Berlusconi has banned this Publicis-produced spot from both state-owned RAI television and his own Mediaset broadcasting empire, for its overt use of lesbian themes. It’s not clear exactly what motivated Berlusconi’s decision, but for a guy who is now most famous for his “bunga-bunga” group sex parties and underage girlfriends, it’s one hell of a hypocritical move.
When BMW relaunched the Mini brand in 2001 with a modern interpretation of Alex Issigonis’s classic, it made a big splash by proving that high-end customers would pay top dollar for a well-branded subcompact car. The only problem was that not everyone could live with the Cooper’s size limitations, so BMW extended its wheelbase and added an third suicide door, creating the Clubman. The Clubman did not make the kind of impact that BMW hoped, as it turned out that four doors were as important as the Clubman’s extra space. Accordingly, BMW developed a four-door “SUV” for the MINI brand, giving it a potential brand boost in the size-obsessed US market. Now, for reasons that are difficult to fathom, MINI is previewing a two-door concept version of the Countryman known as the “Paceman.” Because customers have been clamoring for the (relative) inefficiency of the Countryman paired with the (relative) impracticality of the Clubman? Or because Land Rover just debuted its own “Sports Activity Coupe” and MINI can’t help but chase the pointless niche with its own me-too offering? No prizes for guessing…
Automotive News [sub] reports that Mitsubishi Motors North America has reached a deal with the workers of UAW Local 2488 to keep its assembly plant in Normal, Il open for the foreseeable future, building vehicles based on a new platform. Mitsubishi previously missed a deadline to assign new products to the Normal plant, forcing the firm to increase base wages there. With wages increasing and no new products in the offing, many have speculated that Mitsu would exit the US market, a move its CEO has strongly rejected. In fact, it now appears that Mitsubishi will cut back or abandon its European production rather than exit the US. But the new deal with its US labor force hasn’t shed any new light on how Mitsubishi will achieve its goal to quadruple sales… and until the firm announces new products for US production, this mystery will only deepen.
Lotus has approved its Emas city car concept for production in 2013, giving the sportscar firm an in-house competitor to Aston Martin’s Cygnet rebadge of the Toyota iQ. The extended-range electric car was first shown at the last Geneva auto show, when our own Martin Schwoerer praised its “enormous’ interior space, and well-engineered packaging. The Emas uses Lotus’s three-cylinder range extender, mated to an electric drivetrain with a peak output of 75 kW (101 HP) and 206 lb-ft of torque, and will be the only non-performance vehicle in the Lotus range. But it won’t be the cheapest bit of Lotus-branded kit you’ll be able to buy when the brand relaunches, as the NYT reports
Lotus will also put its name on an array of quotidian objects like key fobs, cellphone holders and laptop bags, which a Lotus publicist described as “cool, high-end pieces that provide an entry level to the brand.”
But with so much emphasis being placed on turning Lotus into a “lifestyle brand,” there’s a major cloud hanging over the whole project: though Lotus is one of the quintessentially British brands, the firm says it will shift production to a supplier on the European continent (think Valmet and Magna-Steyr) if the British government doesn’t make with a £40m ($62m) Regional Growth Fund loan to support a new factory in Hethel. Which means that if the British government doesn’t take a huge gamble on a firm that even Bob Lutz thinks only has a 60 percent chance of success, Lotus will not only no longer be a true British brand, it won’t even build is own cars. But should British taxpayers bankroll such a risky play at a luxury niche?
This is the B55, a silly one-off project by workers at Mercedes’ Rastatt plant that involved shoving an old “55” AMG engine into a new B-Class, running a driveshaft through the “sandwich floor” and hooking it up to an old E-Class wagon rear axle. The result: 383 HP, a 0-60 time in the 5 second range, and what Autocar terms “surprisingly mature dynamic properties.” Possibly even more surprisingly, the whole project was done without a lick of help from the nutters at AMG, and required no frame modifications. Best of all is how comfortingly old-school the project is: the days of turning an FWD compact car into a V8 RWD beast are rapidly drawing to a close. Need proof? For the next-generation of A/B-Class, AMG is going in a very different direction, creating an “A25 AMG” which will use a two liter turbocharged four-banger, putting around 300 HP through a dual-clutch transmission and Haldex AWD. This “STI by AMG” will doubtless be infinitely more practical, efficient and useable than the B55’s old-school V8/RWD setup… but more than a few gearheads will be sad to see these kinds of unhinged anachronisms ride off into the sunset.
One of the more admirable qualities of the blogging culture is a relentless underdog streak. Anyone who mans the ramparts of a decent blog is forever scouring the worlds of business, media and opinion for an opportunity to attack the most prominent voices of the day. And TTAC is no exception: we certainly came up by attacking the apologists and Polyannas who are still massively overrepresented in the world of automotive commentary. But what a difference a bailout makes. While the mainstream automotive media spent much of the leadup to the auto bailout making apologies and excuses for Detroit’s decline, TTAC told the unpleasant truth, gaining us new readers and credibility every step of the way. Now that I find myself being asked to contribute to one of the most prestigious opinion outlets in the world (the NY Times op-ed page) on a regular basis, TTAC is no longer the underdog, and other blogs have stepped into the breach to attack us as the new status quo. Fair enough… let’s do this thing.
Yes, it’s changed… but could you tell?
Both the Senate and the House have passed a one-year extension of the Volumetric Ethanol Excise Tax Credit (aka “blender’s credit”), the Small Ethanol Producer Credit and the ethanol import tariff and the Alternative Vehicle Refueling Property Tax Credit, as part of a tax bill that now needs only the President’s signature to become law. The full suite of ethanol subsidies were extended at their current levels, despite an attempt to lower the blender’s credit to 36 cents per gallon instead of 45 cents per gallon. These subsidies will cost in the neighborhood of $6b next year, keeps cheaper Brazilian ethanol out of the US market, and may inspire a WTO complaint with Brazil. And, as Senator Diane Feinstein (D-CA) puts it:
The ethanol industry is the only one to ever receive the triple crown of government intervention. Ethanol use is mandated by law, its users receive federal subsidizes and domestic production is protected by tariffs. That policy is not sustainable.
And she’s not kidding: even with these subsidies in place, ethanol plants are still losing money on each gallon they produce… and analysts are predicting record-high grain prices after the extension is signed. What’s not to love?
Where did GMC get the idea to take a short-bed pickup, widen the track, fit some Fox shocks and generally beef it up to create a factory off-road “halo” truck? Oh right, from Ford. If you’re not convinced that Detroit still has at least one foot firmly stuck in the past, this halo niche-chasing behemoth should help clear up some of that doubt.
[Graph courtesy:opensecrets.org]
Newly freed from the government’s controlling interest, GM is turning the tables back on the government by accelerating its lobbying efforts some 83 percent in the third quarter of this year. GM spent $2.72m on lobbying in the second quarter of this year, and $2.49m in the third quarter, a massive increase over the $1.36m GM spent in the third quarter of last year (Chrysler spent $846k last quarter). Bloomberg reports
The Detroit automaker had nine registered lobbyists speaking with federal agencies and Congress on free trade agreements, distracted driver legislation, tax credits for electric vehicles, pension legislation, climate change bills [as well as] Wall Street reform; fuel economy regulations; U.S.-Asia trade; pending free trade agreements with South Korea, Colombia, and Panama; funding for renewable fuel research; defense spending; emergency response privacy regulation; event data recorders; pedestrian safety and other issues
But let’s be real about something: some of these issues are just a little more important than others….
Ever since four-door coupes became a dime a dozen, the European auto industry has been looking for a new niche, and for much of the past year or so, it seemed that the next big thing would be “small premium.” Inspired by the MINI, European automakers from Alfa to Audi have been trying to get consumers to spend big money on tiny, plush cars. But with Audi’s A1 starting at €15,800 ($20,873), it seems that even the efficiency-happy Germans aren’t willing to pay the price of entry for this new niche. Audi built capacity for 100k A1s at its Brussels plant, but since introducing the car in August, Audi has sold only 20k of the pricey subcompacts. And yes, the slow sales do seem to be tied to the exorbitant pricetags.
Recent Comments