I’d like to personally apologize to the readers of TTAC; while everybody else was rushing out of BMW’s showcase Manhattan dealership to file their instant-dispatch posts regarding BMW’s twin introductions today, yours truly was standing in front of the infamous “Squid and Whale” diorama at the Museum Of Natural History and feeling very conflicted about my urban youth and rural adulthood. So here we are, ten hours after the press event, and I’m finally getting around to posting this.
Anyway… Got $499 a month? Are you interested in a 170-horsepower electric 1-Series which zips to 60 in about nine seconds? Nope? How about a super-high-tech BMW turbo four-cylinder that doesn’t quite match what the Koreans are doing?
The March 11 tsunami is having long term effects on Japanese car production. Toyota, the world’s and by far Japan’s largest car company, is severely impacted. Toyota just announced that vehicle production from May 10 to June 3 will proceed at approximately 50 percent of normal. Read More >
It was easily one of the best entries in the old CAR magazine “Good, Bad, and Ugly”: “Good: Her name is Rio… Bad: …and she’s crap.” Don’t look for this new-generation Rio to receive the same dismissive insult, at least not among the journalists who actually have a chance to drive and honestly evaluate the vehicle. Read More >
Engineers living in southeastern Michigan have had a rough go of it these past few years. As the US automakers bled money, lost market share, retrenched and in the case of GM & Chrysler eventually went through bankruptcy, they shed more and more engineers. The talent, skill and many, many years of experience was jettisoned as successive layers of fat, muscle and then bone were cut out of the domestic automakers in their restructurings (Ford under Alan Mullaly went through what was effectively a restructuring financed by mortgaging the company for $26 billion).
The first tentative signs of the Big 3’s recovery have been based on some pretty decent product so it’s clear that the automakers and their vendors still have a well of in-house talent from which to draw, but with GM & Ford currently banking substantial profits and Chrysler appearing to approach profitability (according the Sergio), the auto industry as a whole is gearing up by going on a hiring spree. Engineers, particularly electrical and chemical engineers (see EVs, hybrids and batteries) are once again in strong demand in Detroit. Companies looking for mechanical and software engineers were actively hiring as well.
“We can’t make cars as fast as they sell in China,” said an old friend of mine last night on the phone from Wolfsburg. He works at Volkswagen, the company that fights with GM for the title of King of the Middle Kingdom. I wanted his opinion on the sudden reduction in Chinese car sales. His answer? “What reduction? We are building three new factories in China, and we better get on with it.” He is right. If they don’t hustle, the competition will pour concrete faster than Volkswagen does. Read More >
In a memo that surprises no-one that has followed TTAC’s extended coverage of the March 11 earthquake and tsunami, Toyota’s U.S. chief Bob Carter warns dealers that deliveries of parts and cars could be severely restricted for months to come. “What we don’t know are vehicle production levels for May through July,” Bob Carter wrote in a memo. “The potential exists that supply of new vehicles could be significantly impacted this summer.” You have seen this coming. Read More >
After several abortive attempts over the last several congresses, the “Right To Repair” Coalition for Auto Repair Equality has had a new bill introduced in the 112th Congress with the goal of
requiring that car companies provide full access at a reasonable cost to all service information, tools, computer codes and safety-related bulletins needed to repair motor vehicles.
The auto industry has long opposed such bills, which have been passed on the state level but have never been passed into federal law. Back in 2009, then-head of the Alliance of Automobile Manufacturers lobby group, Charles Territo, argued against Right To Repair legislation in a TTAC editorial, calling it “a solution in search of a problem.” More recently, the AAM opposed a Massachusets Right To Repair bill on the grounds that it would increase Chinese piracy of auto parts. Needless to say, now that CARE has finagled HR 1449 into Congress with bipartisan sponsorship (from Todd Platts (R-PA) and Edolphus Towns (D-NY)), the debate is about to get fired up all over again.
Nobody dares to say it aloud, but parts of the “Buy American” contingent are secretly high-fifing when bad news from Japan is on TV or on the net. U.S. car companies themselves aren’t so sure, one missing chip, or an absent acceleration sensor can bring a whole line down. And of course they won’t be caught saying something reprehensible. Leave it to the Deutsche Bank and The Nikkei to end the (dis)grace period and to come out with their analysis of which carmaker might gain from the Tohoku tsunami. Read More >
Good, cheap, fast: Pick two. Or so the saying goes. The new RAM 1500 Express promises to be all three, offering a 390-hp HEMI, the coil-sprung platform which supposedly offers better dynamic qualities than the commpetition, and some youth-oriented features like 20-inch wheels, at an out-the-door price around $23,830.
We regret that Frank Weber has quit. We thank him for what he has done and wish him the best for the future
Weber, Opel’s product boss, had previously led GM’s global midsize vehicle development and was the head of electric vehicle development (where he wetnursed the Volt) before moving to Opel. It’s not clear where he’ll be going, but he will be going to an “as-yet-unnamed competitor.”
In other industry personnel news, AN [sub] reports that Hyundai has hired GM veteran Steve Shannon to fill its head marketing position, which was opened when Joel Ewanick left for Nissan and then GM. Shannon previously held marketing positions at Saturn, Olds, Buick, Hummer, Saab and Cadillac in his more than 25 years at GM.
Just two short months after Hyundai CEO John Krafcik warned that a brewing incentive and price war was “a step backward for the industry” and “short-term thinking in a long-term process that hurts manufacturers and consumers,” it seems that any signs of a price war are over. But before you rush to give a certain earthquake/tsunami combo credit for the entire situation, consider for a moment that Ford has now joined Toyota in raising prices while insisting it has nothing to do with supply interruptions. A Ford spokesman tells the Detroit News that
This is the second price increase this year [Ed: Ford bumped prices by $130 in January] but has been in the works for months as the industry faces higher commodity costs
Meanwhile, Ford is also the only Detroit-based manufacturer to bring incentives below nine percent of its average transaction price, as its March incentives were down nearly 10 percent compared to March of 2010. Between Ford and Toyota bringing up prices and Hyundai keeping sales growth strong despite low-low incentives, the pressure is mounting on GM, Chrysler, Nissan and Honda. Will they continue to trade margins for volume, or will they take the opportunity to bump prices as Japanese parts shortages continue to play out?
This weekend, Kamil Kaluski’s CarGuyDad blog featured a first drive of the refreshed Acura TL. Nothing new there, right? The introductory event was in Hollywood. The guests were flown in, shown a bit of the ol’ high life, and sent out for a day of road drives and parking-lot semi-autocrossing. Again, nothing new. This is all standard fare for press-preview events. Every working autojourno could sleepwalk through such an event, and most of them do.
There was no sleepwalking at this Acura event, however, because there were no working journalists. In fact, the people evaluating the less beaky, greatly more tasteful 2012 Acura TL on this particular press event weren’t members of the press at all. They were Acura owners.
One of the toughest challenges facing industry analysts right now involves determining what the market for electric vehicles actually looks like, what kind of volumes it will support and for how long. It’s a problem that I’ve hashed over at length with an old college buddy who now works at a cleantech investment firm, and let me be the first to say that it’s not an easy problem to pick apart. The number of unknown quantities and moving parts explains why opinions among money managers can vary so wildly even about relatively marginal firms like Tesla.
Luckily, Thilo Koslowski of Gartner Research [and celebrated coiner of the term “the trough of disappointment”] has dedicated himself more thoroughly to the problem, and has some startling findings to report. For example, despite the relentless pro-EV hype present in all levels of the media, Koslowski’s research shows that more consumers are actually considering buying a natural gas-powered vehicle. Looks like Edmunds’ Jeremy Anwyl was on to something when he called for an end to EV tax credits in favor of greater support for natural gas cars.
For March, TrueCar has included a chart diagramming the ratio of incentive spending to average transaction price, giving us a look at two key metrics on a single chart. Short of a complete fleet sales or a retail market share breakout falling into our laps (crazier things have happened), this is one of the more important metrics you’ll want to look at to qualify the raw volume numbers coming out of March. But it’s not the only one…
Doesn’t anybody read the Detroit News? I can think of 6,750 people who don’t. They are the people, rental agencies, or hopeless confused aliens trying, albeit incompetently, to fit into human society who took home a new Chrysler 200 in March. This kind of volume won’t worry Toyota, but a full year of this volume would pay back the likely development costs for the car and then some.
This 200-centric news is part of a pretty solid month for Chrysler overall. The platform mate Avenger rang the register for 5,954 units, while the brand as a whole sold over 121,000 cars and trucks. The full press release is here, but no matter how you look at it, this is good news for the Mopar crew. Let’s see what a few months of restricted Accord and Camry production does for them…
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