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.
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Chrysler has earned the reputation of having some of the shoddiest interiors in the business, a perception they’re working hard to address with their new products. Jack Baruth calls the new Grand Cherokee’s interior “class competitive,” and the new 300 will aspire to at least match that accolade. And though we won’t know just how good the 300 is until we fondle the materials, jiggle the dials and knock the dash, we do have a few pictures of the 300’s interior to pass snap judgment upon. Leaving aside details like whether the 300’s wood trim has ever seen a forest before, is the 300 shaping up to be a pleasant place to spend time behind the wheel?
When “Maximum” Bob Lutz showed up on the advisory board at Lotus, we were hardly surprised about his choice of post-retirement projects. After all, Lotus is one of the most audacious (privately-funded) turnaround attempts in an industry that runs on turnarounds, and Lutz is the king of building automotive hype, fresh off of one of the most overexposed automotive projects in recent memory, the Chevy Volt. Besides, Lotus’s shot at an overnight leap from niche enthusiast brand to Ferrari and Porsche-rivaling juggernaut is so brazenly implausible, that Lutz actually lends credibility to the project. At least, he would do if he didn’t have that irrepressible knack for saying things like
People keep asking me if I’m sure the new plan will work, and of course I can’t guarantee that. It’s a risk. But I’m quite certain it stands a better chance than the Lotus status quo, which for sure would eventually lead this great brand into terminal decline
Lutz goes on to tell Autocar that Lotus’s billion dollar turnaround “a big gamble,” and admits that “a fair bit of showbiz” is driving Lotus’s quantum leap towards becoming a full-line sportscar and supercar maker. Does it sound like Lutz might have some mixed feelings about Lotus’s rush to trample its enthusiast credentials? More maximum mixed feelings below the fold.
We have said the race for who will be the #1 luxury brand in the U.S.A. is too close to call and that it will come down to the wire. Now, those weenies of Mercedes throw in the towel and concede defeat. “I’m pretty sure we’ll be No. 3,” Ernst Lieb, president of Mercedes-Benz’s U.S., told Bloomberg. Whatever happened to “we will never surrender?” (Sorry, that was a Brit.) But look at those numbers, and join us in shouting “boohoo” at Lieb. And Mercedes. No fight left in them no more? Read More >
It’s a strange question to ask, considering that Hyundai is already selling the Genesis and Equus luxury sedans, but apparently Hyundai decided to bring out the cars before launching a brand. According to the Wall Street Journal
There are three branding scenarios under consideration. The most likely is to create a subbrand called “Genesis,” and sell the models under the same dealership roof as Hyundai but in a separate part of the showroom, possibly with dedicated salespeople, said John Krafcik, the president of Hyundai Motor America.
The other scenarios are to keep the premium cars badged as Hyundais, or—in the most ambitious move—spin off the brand into separate dealer facilities, much like Lexus or Honda Motor Co.’s Acura
Those are the options, but for a little more context, let’s check in with Hyundai USA boss John Krafcik…
You-know-what-eating grins in Munich: BMW outsold rivals Audi and Mercedes-Benz around the world last month on strong sales of the new 5er and the new X1 SUV. Read More >
GM raised a few eyebrows when it priced its new Cruze compact at or above the base price of its closest competitors, marking a shift upwards in its pricing strategy. But with loaded LTZ versions of the Cruze crossing the $24k mark, one obvious concern was cannibalization of the forthcoming Buick version of the Cruze, the Verano. GM has yet to officially announce pricing for the Verano, but an online survey of Buick dealers has leaked to GM Inside News, showing that GM is eying a price range of $21k-$26k for the new Verano, a price point that certainly overlaps with the higher-trim Cruze models. And with the 2.4 liter four-banger from the Regal tipped as the Verano’s base engine, the case for the similarly-engined (and not all that much larger) Regal is made a little less convincing by the addition of the new compact Buick. Hit the jump for GM’s proposed trim levels.
Last night, I was on the phone with one of my VC friends (that’s VC as in Venture Capital, not as in Vietcong, don’t get any ideas) and he decried the paucity of free cash: “From Joe Shmoe to billionaire investors, all are holding on to their money.” It can’t be all that bad if what Autoguide says is right, and if De Tomaso will be back from the dead. They say, there will be De Tomasos at the Geneva Autoshow. Read More >
Hyundai has been working its way out of the low-cost, low-quality basement for some time now, but even with the introduction of its Genesis luxury sedan, the brand has maintained a certain amount of working-class value appeal. That image has served Hyundai well over the last several years, when an economic downturn has sent record numbers of customers to Hyundai dealerships in search of a deal. But with a new upscale-looking design language transforming solid but uninspired offerings like the Sonata into memorable designs, Hyundai wasn’t likely to remain the scrappy, more-for-your-money underdog forever. And sure enough, Hyundai tells Automotive News [sub] that it’s getting away from the solid values of quality and practicality, and moving into the tenuous world of “premium” brand placement. Executive Vice President for global marketing Cho Won Hong explains
In the past 10 years, we have been very successful in building an image for quality. From now on, our direction will be defined as new premium or modern premium. We have been doing quite well in building good functional quality. But we still have some room to improve our emotional quality, and that is related to our brand strategy. That’s why we set modern premium as the brand direction for the next five to 10 years
We’ve been following the race for the #1 luxury brand in the U.S.A. for quite a while with rapt attention, and have been predicting all along that it will come down to the wire. It looks even more so after dissecting the November numbers. Or rather after leaving the dissecting to Bloomberg. Read More >
Lincoln’s recent styling direction has certainly generated its fair share of controversy here at TTAC, and certainly Lincoln’s sales need to improve if dealers are going to swallow the loss of Mercury. Accordingly, Ford has hired Max Wolff, former head of exterior design for Cadillac to reshape the look of Lincoln. Which is an interesting choice considering that Cadillac’s exterior designs, though distinctly superior to Lincoln’s of late, have not been without their controversies. Besides, what are you supposed to expect from a designer who’s been sticking to Cadillac’s Art&Science playbook for years? But there’s a bigger question here: is Lincoln a mere makeover away of success in the brutally competitive luxury space? Would an MKS in a freshly-tailored suit be a real threat to the E Class or 5 Series? And if not, what should Mr Wolff be wrapping in his Cadillac-sharpened sheetmetal?
Does the new BMW Six Series improve on Bangle’s wild-eyed vision of an avant-garde gentleman’s coupe, or is it as bland as the music it’s introduced to here? Personally, I’d vote for the latter, but then I always thought that the last Sechser was one of Bangle’s more successful designs, injecting some much-needed vitality in the otherwise ultra-conservative world of German full-sized coupes. But then I’m still decades away from being in the target demographic for the Six Series… what say you?
Giorgetto Giugiaro sold out to the tedeschi at Volkswagen. Bertone is teaching budding Chinese car designers in brutally cold Changchun. And now, the last vestige of inspired Italian car design is on the auction block: Pininfarina . Actually, they had hired the Italian investment bank Banca Leonardo in August 2009, but they took their time. Now, the bidding is getting serious. And guess who wants to take Pininfarina home. Read More >
The Nissan Murano may start at a reasonable $28,500, but stepping up to the recently-announced CrossCabriolet version will set you back a healthy $46,390 (before $800 destination charge) according to Nissan ‘s website. That makes it the second most-expensive Nissan after the GTR, and it comes in only one trim level (with navigation, heated everything, a Bose system, HID headlights and more). So, why wasn’t the CrossCabrio released as an Infiniti again?
According to a recent projection, GM will be selling over 2m vehicles on its Gamma (Aveo) platform by 2016… and thanks to Cadillac’s Urban Luxury Concept, we know what the most profitable iteration of that platform could look like. Yes, it’s the new-wave Cimarron of the future, inspired by such pedigreed city-car competitors as the Aston-Martin Cygnet and the Bugatti Petit Sport Sang de Navet. And with Lambo doors and a grille that would put a crunk rapper to shame, the littlest Caddy certainly does everything it can to distract from its humble (presumably budget Korean hatchback) roots. Because, as lead designer Frank Saucedo puts it
There is no minimum size for a Cadillac driving experience.
But there is a minimum volume per platform target… and the importance of this metric almost guarantees that, in some way or another, the Cimarron will ride again.
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