We should have seen this coming when Mazda first called its Furai and Nagare concepts “design studies” instead of “the unfortunate results of a savage brown-acid-and-Lovecraft bender at Mazda’s design studios.” New direct-injection, stop-start engines are approved for the European version of the new Mazda5, but as usual there are no guarantees they’ll make it to the US market version. More details when Mazda5 comes alive at the Geneva auto show.
“In Europe, Lancia is an undersized, underdeveloped brand, with nothing bigger than the Delta. Chrysler, which has a true global reach, has nothing smaller. Put them together and you have a full line-up,” is the short version of Sergio Marchionne’s plans for the Chrysler and Lancia brands. The surprising bit [via Autocar]: “we could see the two converge as early as the end of the year.” For Americans this means that some of the holes in Chrysler’s lineup could be plugged up by rebadged Lancias along the lines of the Delta shown at the Chrysler stand at the Detroit Auto Show. And hey, who are we to say no to all-new Chrysler products? Goodness knows the brand needs something new besides special edition lipstick on the same old pigs. There’s only one hitch…
Subtitle two: we don’t believe a word of it. The report comes from an exclusive interview of GM Chairman/CEO Ed Whitacre at the Volt fanboy site gm-volt.com. GM-volt’s Lyle Dennis asked Whitacre if GM would lose money on every Volt it sells, a fact that GM executives have never tried to substantively deny. Until now. Whitacre’s answer:
“We’re not in business to lose money,” he said. “We did enough of that already.”
The Volt “is going to sell in the low 30s,” said Whitacre. “We’ll get a margin on that.”
Oh really? Because it sure seems that GM plans on selling the Volt for $39,500-$45,500, and that the “low 30s” number is dependent on a tax credit. As for Whitacre’s claim that the Volt will make profit, the lack of time-constraints on his prediction is all you need to know. With enough sales and over enough time, almost anything will create profit, especially if the government is distorting the battery market for you. Meanwhile, GM still has to overcome $40k sticker shock (sorry, but you can’t exactly advertise post-tax break prices) and at least a few years of loss on the Volt. But if the gm-volt comments section proves anything, it’s that you can never go wrong misleading the fanboys.
The AP (Yahoo) reports:
Tata Motors already has made a European version of the four-seat car that will cost about $8,000 when it debuts in 2011, and a Tata Technologies official said privately that the U.S. version is expected to have a comparable price. The official did not want to be identified because the price has not been made public.
A one liter, three cylinder engine making a reported 60 hp. Five speed manual transmission. Two airbags, ABS, traction control, and electric power steering. 14 inch wheels. [via Autocar] Would you bite for $8k? Everything sells at the right price. Where is the Nano’s magic number?
“Scion is pretty much a North American brand, so that is why it is very natural to think more development, more design work, should be done in North America,” Yoshi Inaba, president of Toyota Motor North America tells Automotive News [sub]. In other words, fans of Scion’s first generation of JDM confections who railed against second-gen bloat are probably out of luck. Sure, model four in the Scion lineup will be the iQ minicar, which is small and weird enough to have been a member of the Scion invasion team, but after that? It’s all bloat and bigger blind spots from here on out. It’s what America wants.
Battery firm Ener1/EnerDel, which recently brought the EV firm Th!ink back from bankruptcy, has lost the battery contract for Fisker’s Karma luxury EV. According to Schaeffersresearch, Ener1 “decided it would be better pursuing higher-volume battery supply deals when larger automakers begin rolling out their versions of electric cars.” Says Ener1 CEO Charles Gassenheimer, “we have some capacity constraints on our side. We’re interested in high volume programs in the future.” The public story is that due to Ener1’s Th!nk tie-up, Fisker’s October sales roll-out was too much, too soon. The real story illustrates the complicated relationships emerging between EV firms and battery suppliers.
Just in time for Truck Thursday at TTAC comes this hot bit of scuttlebut from Jalopnik: Hyundai might be developing a “highly-capable off-roader.” El Jalop cornered Hyundai USA boss John Krafcik at the Detroit Auto Show and asked him what his development boffins were up to. Krafcik’s cryptic answer is the seed of today’s WAROTD:
“every time our designers get together and start looking at concepts and the future, the first thing that comes out of those meetings — what everyone gets excited about — is the prospect of a Bronco-like, highly-capable off-roader.” As a follow-up on that answer, I asked if he meant a Wrangler-fighter. He answered only by smiling and repeating himself — “highly-capable.”
More capable than a Tucson? Seriously though, it will be a dogs age before Chrysler has the cash to update its bloated JK-generation Wrangler, and Hyundai’s going in for the kill. Or not… Krafic words his answer pretty cagily. Besides, Hyundai hasn’t had an even semi-serious off-roader since it rebadged the Mitsu Pajero to create the Hyundai Galloper (above).
About a year ago, Nissan’s response to nose-diving truck sales betrayed some serious ambivalence about chasing the profitable-yet-dangerous segment. Its first plan was to rebadge the new Ram, but that deal has fallen apart in the wake of Chrysler’s shotgun wedding to Fiat. At a loss for options, Nissan canceled the Quest, QX56 and Armada and started tooling up its Canton plant to produce commercial vehicles. It looked like Nissan’s days in the truck market were over. Now, USA Today reports that Nissan is developing a new full-sized pickup (and SUV) after all. By itself. Who’d have thunk it?
We’re at a difficult phase in the global economy. Economists would have you believe that we’re out of recession and things are starting to look rosy. But just talk to someone like Peter Schiff and he’d have you believe that a second downturn is inevitable. It really is tough to say where the economy will go and it’s showing in the car market. USA Today reports that Toyota are looking at their 4Runner & FJ Cruiser models and wondering whether to build a new generation or not.
Yesterday we confronted established automakers’ fears of the disposable automobile imported from China or India, but as Automotive News [sub] reports, the majors aren’t just sitting still on the issue. Nissan, which already sells a decontented Versa for $10k is planning two more vehicles at that price point for the US market, based on its new low-cost “V” platform. “The V platform will be sourced in Mexico” reveals Nissan’s North American chairman. Three vehicles will actually be produced in Mexico on the platform, but only two of them will be sold stateside.
The prospect of US launches by Chinese and Indian auto brands like Tata and BYD have at least one of the established US-market players in a paranoid froth. Honda VP John Mendel revealed a few of the nightmare scenarios that keep him up at night to USA Today [UPDATE: more on Mendel’s fears at Automotive News [sub]]. One, inspired by BYD’s plans for a 2010 US launch without a distribution channel in place, is that newcomers could skip the dealer model altogether. Mendel worries that “warehouse stores or electronics stores” (sound familiar?) could be used to cut dealers out of the loop, “blowing up” business-as-usual for US distribution strategy.
After backing away from the ridiculous torque figures it gave with its R8-based e-tron, Audi is having another crack at the electric sportscar theme with a second e-tron concept at the NAIAS. Of course by not giving it a new name, Audi created the impression that this might be a very similar concept to the R8-based model it says its going to build at some point. The e-tron mk II is, however, a very different beast. Where as the first e-tron was an electrification and restyling of the R8, the e-tron 2 actually previews the look of an eventual R4 sportscar, based on Volkswagen’s Blue Sport concept. If Audi eventually sells an EV version of that vehicle (and they say the e-tron name will become a brand for Audi EVs) and it’s materially the same as this concept, it would be the first RWD production Audi since… well, why don’t we have some guesses?
It had to happen eventually: Bob Lutz, the father of the Volt, admits his last but not least automotive child is not going to reliably meet his lofty expectations. ABC reports that in an interview at the NIAS, Lutz let the air out of the Volt’s 40 mile EV range that has been predicted to be as reliable as the sun rising on a new day, and perpetuated by GM even more religiously than the 230 mpg claim: Sounding as if he had just read our recent post on EV range, ABC quotes Mr. Volt: Read More >
Speaking to MarketWatch at the Detroit Auto Show, Tesla Chairman Elon Musk apparently just revealed that the Tesla Model S sedan will be released “within two and a half years.” Which is interesting considering Musk claimed that production would start in 2011 at the Model S launch last March. But then, Tesla is still trying to decide on a factory location, apparently waffling between former aeronautical manufacturing locations in Downey and Long Beach. And apparently Tesla’s mere consideration of a brownfield site in Downey has drawn protests from a group calling themselves The Raging Grannies.
Buffett-backed Chinese EV firm BYD is back at the Detroit Auto Show after making its main-floor debut last year. Like most automakers, BYD has toned things down a bit this year, featuring the same vehicle it brought last year, the all-electric e6 crossover. Last year, BYD said the 250-mile, 14-sec 0-60 e6 would be coming to the US at an estimated $40k pricetag. This year, BYD’s Fred Ni is telling ABC that the e6 could be more reasonably priced, implying that it would be sold at a price point comparable to similar gas-powered vehicles.
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