Mazda may be free from its less-than-entirely-successful relationship with Ford, but when it comes to US production, Mazda is still very much stuck in its Ford-dependent past. B-Series pickup production has ended in St Paul, but Tribute is still built alongside Escape in Kansas City (for the moment), and the majority of Mazda’s US production is still accounted for by Mazda6, which is also built alongside Fords at the shared Flat Rock “Auto Alliance” plant. But AutoWeek‘s Hans Greiml reports that the Nikkan Kogyo newspaper believes Mazda could be looking to pull out from Flat Rock.

the Mazda6 is a big reason Mazda can’t turn a regional operating profit in North America–one of its most important markets.

The company planned to produce 100,000 Mazda6 units annually at the Flat Rock, Mich., plant, when the redesigned sedan was launched there in mid-2008. Then the financial crisis hit.

Last year the plant built only 45,168 units.

Mazda is cagey about what options it is mulling. If it quits producing the Mazda6, it could bring in another vehicle–or Mazda could quit the plant completely. Speculation abounds in Japan that Mazda is eyeing a new, lower cost North American production base in Mexico.

In TTAC’s early years, we spilled much digital ink over GM’s bloated brand portfolio, wondering again and again what brands should be cut, which should move upmarket and which should move downmarket. It’s a fun exercise, but one that history has largely passed by. Not only did GM cut Saab, Hummer and Pontiac in its bankruptcy, but Chrysler has more than doubled the potential number of brands to be sold through its distribution channels, shifting the brand-clutter center of gravity towards Auburn Hills. But GM isn’t done struggling with the legacy of the Sloan system, as GM North America boss Mark Reuss tells Automotive News [sub] that GM still has at least one major branding battle on its hands: Chevy versus GMC.

We need to make sure that we drive the differentiation in the product and the price to create that separation that we know we can on GMC and Chevrolet. I don’t think we have the margin opportunity set up quite right with GMC.

Read More >

Of all the barriers standing in the way of commercial success for electric cars, the “image issue” is perhaps one of the least understood. Most EV firms have embraced the distinctively Western “green consumption” trend, in which a kind of environmental asceticism drives consumer values of downsizing and ultimately self-denial. But making a conscious choice to not use gasoline and accepting whatever the market happens to offer is not a phenomenon that automakers can expect to sustain itself. If they ever want to achieve mass acceptance, EVs need an image context that goes beyond graywater recycling, “freeganism” and other highly conscious but ultimately self-denying lifestyle choices.

Racing is one obvious way to broaden EV appeal, as it highlights the positive performance aspects of EV drivetrains, but sadly no major OEM will commit to an EV racing series. Besides, racing hardly builds on the existing (if limited) green appeal of EVs. Enter the EV as disaster response vehicle. The NYT has a fantastic story about the use of EVs in rescue efforts after the Japanese quake/tsunami, when gas was largely unavailable. The story proves that EVs, far from being mere lifestyle accessories, can be hugely useful in the right circumstances. And because so many green lifestyle choices stem from a perspective of apocalyptic expectation, this story both broadens and builds on the EV’s existing appeal. Most importantly of all, pictures like the one above will do more to banish the limp-wristed, “anti-luxury” image that curses EVs than just about anything else. Just as SUV buyers would swell with pride seeing an ad image of their Explorer in off-road conditions they would never visit themselves, the image of EVs running first-responder missions in a quake-torn Japan could be of lasting significance.

Electric car makers like to make a big fuss about how their clean-green automobiles are going to “change the industry.” Sometimes those instincts lead to hubris and overreach (ahem, Tesla), while other times the changes make you long for the relative simplicity of the new car dealer fandango we all go through to buy “regular cars.” In the case of Think, the business innovations (namely the innovation of relying on accumulating local tax credits to get the price to seem as low as possible) are enough to make the world of dealer markups and delivery charges seem downright quaint and homey. And that’s not the way to change this business…

How many Civics could a Honda make, if a Honda could make Civics? Here’s a hint: “half as many” would be too optimistic a guess. Honda has warned its dealers to expect “severe shortages” in supply of the new 2012 model, and virtually every other Honda model will have the same availability issues until later this year. Toyota’s in the same boat.

What does this mean for TTACers who want to buy a Japanese-brand car?

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Hyundai’s latest Assurance marketing technique, which guarantees resale values on all 20111 model-year purchases, is already being hailed as the latest in a line of creative, zeitgeist-appropriate incentives. The one downside of guaranteeing residual values: well, people are free to draw their own conclusions from them. For example, it seems safe to say that the Azera and Accent should probably be replaced fairly soon, as their weaker resale values make them stand out from an otherwise extraordinarily consistent lineup. What’s that you say? The new Accent was announced at the same time as the resale guarantee? And an attractive new Azera replacement will be launched within a (the?) year? Er, carry on then.

In all seriousness, whenever Hyundai comes out with a new “Assurance” program, I’m sure a number of other brands look at copying elements. The genius of this latest program, however, is that it only really works if your entire lineup has been updated in a recent and consistent manner. Imagine a chart like this for certain other brands, and you’ll realize that the benefits of a strong and (possibly more importantly) consistent product line can be far reaching indeed.

Advertising on the side of your corporate fleet is a great idea. Especially if you are an electric company and you have electric cars.

Japan’s TEPCO just changed its mind. Read More >

Especially since the Legacy/Outback started ballooning and the Forester got a dealer-demanded homogenization, the Impreza has been my personal favorite Subaru (my significant other owns an ’08 wagon). It may not win any fuel economy contests in its size class, but the weight of its AWD system and grunty 2.5 liter engine make it a solid baby grand tourer compared to its front-drive competitors. But with gas prices now climbing steadily towards “freak-out” levels and competitors lounging on the 40MPG beach, a consistent 26 MPG no longer cuts the mustard. And so the new Impreza will lose its 2.5 liter engine in favor of a 2.0 unit which, along with some weight loss and a CVT will power the new Impreza to a 27/36 MPG EPA rating (25/33 with the manual transmission). Far be it from us to complain about less weight and more fuel economy, but it feels like the Impreza may be giving up some of its niche appeal in search of mainstream acceptance… not that there’s anything wrong with that.

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Hyundai has received a lot of attention recently for improvements in its product lineup, but as TTAC has proved, it’s actually the brand’s non-product innovations  that can be most closely tied to its recent success. Hyundai’s biggest sales growth in the US market has come on the heels of its 100k mile warranty and its Assurance buy-back program, rather than the introduction of any new car. And so, although Hyundai has revealed its new Accent (which we already showed you), the big Hyundai news coming out of New York is the brand’s latest Assurance feat: a trade-in value guarantee. The program rolls out in May, and Hyundai USA CEO John Krafcik tells the DetN that

Depreciation is a big unknown. It’s like giving one of the big benefits of leasing, but you’re still owning the car. We’re already one of the highest brands in loyalty, and we think this will help.

It certainly can’t hurt.

Speaking at the New York Auto Show today, GM CEO Dan Akerson defended his inconsistent approach to sales incentives, telling the AP [via The Washington Examiner]

I feel pretty good about that. I think we’re in pretty good shape. I don’t want to be a predictable competitor. I don’t want the other guy to know exactly what I’m doing.

For some context,

GM surprised the industry — and Wall Street — when it raised discounts by $400 per vehicle in January and February. Most automakers didn’t raise them because demand for new vehicles has been rising in line with supply…

GM pulled back on its incentives in March, spending $600 to $800 per vehicle less on the deals. But it was too late for some investors, who shied away from the company’s stock because higher rebates lower car companies’ profits.

But does Akerson’s upside, the element of surprise, outweigh the downsides of his hot-cold incentive strategy?

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Cars like Cadillac’s 556 HP, rear-drive, manual transmission-equipped CTS-V SportWagon are the kind of offering that enthusiasts lust after, even if a relative “value-price” of $70k-ish keeps it in aspirational territory. And by offering a CTS “Performance Edition” with the option of mating a six-speed manual to GM’s well-liked 3.6 liter V6, Cadillac gives enthusiasts an appealing opportunity to bask in some of the V’s reflected glory. But apparently not many enthusiasts are interested in pursuing this opportunity, as InsideLine reports that the manual transmission option will be dropped from the 2012 CTS 3.6.

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Prices for the Saab 9-5 SportCombi have leaked in Sweden, and according to Autobild, the wagon version actually costs €114 less than the sedan. Whether they’ll make the same offer outside of Sweden isn’t clear… but then neither is anything about Saab’s future. And instead of haranguing the poor Swedes about the questionable financial sense of this decision, let’s just agree that desperate times call for desperate measures. If nothing else, Saab’s wagon-centive sets it apart from the industry’s business-as-usual.

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.

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Dan writes:

Sajeev,

I don’t know if this adds up to material for one of your columns but here you go if you want it. I am shopping for a new WRX wagon.  These are pretty rare around here, hunted to extinction.  I’ve been checking around and the number in inventory at the typical dealership is between zero and two.  The local dealership wants to charge me MSRP, as well they might, but they have a new narrative to go with this: the factory was shut down in Fuji and there’s going to be a gap in deliveries.  Is this hooey?

Sajeev Answers: Read More >

Toyota reports [PDF] that it has increased its MSRPs by an average of 1.7%, as the automaker seeks to regain control over pricing which has taken a hit in the year since its recall scandal. Of course, the fact that the firm’s supply of vehicles is likely to be limited by the chaotic aftermath of the Japanese earthquake and tsunami was causing its transaction prices to rise anyway, but Toyota tells Automobile magazine that the MSRP increase

has no relation to any production shut downs or shortages stemming from the recent disaster in Japan

Uh huh. Whatever you say.