Take Buick’s LaCrosse, load it up with a fancier interior materials, wheels and trim, and what do you get? No, not a Cadillac XTS. The XTS, you see, is a fancier Buick LaCrosse for a different kind of buyer. The XTS is for people who might want a fancier LaCrosse, but with some “red blooded luxury” flair. This LaCrosse “GL” concept is for those who want a fancier LaCrosse which retains Buick’s “inviting luxury” vibe. See the difference?  GM’s decision to keep Buick in its brand portfolio has worked out fairly well thus far, bracketing the luxury market with very different brand images and products… thus far. But with Cadillac dipping into Buick territory with its midsized XTS, now does not seem to be the time for Buick to move upwards by showing an ultra-luxury version of its midsized LaCrosse. Luckily this LaCrosse GL is just a concept, but it should remind The General that a two-brand approach to the luxury market has to be especially careful: swallow too much of the “different brands for different buyers” Kool-Aid and overlap becomes unavoidable. Appealing though it may be, this LaCrosse GL sounds a warning…

“Look, when we started the Prius project in 1993, we did not even think of a hybrid system for the Prius. We did not set out to build a hybrid. We studied what was needed for the 21^st century, and two things were certain: The need to protect the environment, and the need to bring consumption down. That’s all we knew, and you did not need to be a clairvoyant to know it.”

The man who told me this last Friday better become clairvoyant. On Satoshi Ogiso’s shoulders rests the future of Toyota. Ogiso is responsible for all new technology at Toyota. As Chief Engineer, he is in charge of the Prius and its many siblings, he is responsible for plug-in hybrids, EVs, fuel cell hybrid vehicles, anything apart from the aging internal combustion engine is his.

I meet Ogiso at the world headquarters of the (still, officially) world’s largest automaker in Toyota City. Read More >

Mitsubishi didn’t exactly light the world on fire when it released its Global Small concept (left) at this year’s Geneva Auto Show… but now that concept has become reality (right), it’s even more clear that Mitsu’s mojo has been lost in the unglamorous world of basic transportation for emerging markets. It’s not clear if the Thai-built Colt/Mirage will make it to the brand’s US lineup, but if it does i certainly won’t help turn around Mitsubishi’s dowdy image here. The only way to make this car any more mundane  would be to debadge it completely. Slightly less prosaic but still quite underwhelming: the Grand Cherokee-meets-Range Rover Evoque update to the Outlander, shown in the plug-in hybrid concept PX-MIEV II. Though none of Mitsu’s new designs are actively offensive, their dullness speaks to some serious creative malaise… especially in contrast to the vibrantly creative Japanese designs that are headed to the Tokyo Auto Show. Perhaps we’ve solved the mystery of Mitsubishi’s disappearing US sales staff?

Hear about two high-ranking Mitsubishi execs leaving their positions simultaneously, and you might be forgiven for thinking “rats leaving the sinking ship.” After all, Mitsubishihas been in deep decline for the better part of a decade, as sales have fallen from a peak of over 345,000 units in 2002. But in actuality, Mitsubishi is having something of a turnaround year. Sales are up 51% year-over-year, and volume crossed the 70k mark in October, guaranteeing the brand its best year of sales since 2008. So, why did VP of marketing and product strategy Gregory Adams, and vice president of corporate planning and incentives Mike Krebs leave Mitsu “to pursue other opportunities”? Automotive News [sub] offers few answers beyond pointing out that Krebs is a ten-year veteran of Mitsubishi Motors America, while Adams joined in 2010. Why the two decided to jump ship (or were forced out) at the same time remains a mystery  for now…

In a newsletter to members of Local 598, an editor revealed an interesting wrinkle in the recently-ratified contract negotiations, writing

With the option of strike off the table and the government still a part of our negotiations (literally sitting in the room with us ‘observing’ our talks), I don’t believe any better agreement could have been reached,

But now, reports Bloomberg [via Automotive News [sub]], local shop committee person Dana Rrouse insists that there was not actually a government official present at union negotiations. He tells the news service

That was a misprint. I didn’t get to proofread it. It went out and then I said ‘Where did you get that from?’ I mean, I talked about us still being under government, but nothing as far as they were sitting there.

The government still owns a large portion of GM’s stock, but it too says it was not involved with negotiations with the UAW. Which is probably the right position to be taking: with so much acrimony generated by the latest round of negotiations, there are few reasons to be associated with them. Still, it’s strange that such an explosive “misprint” should have made its way into a union newsletter. Even if the government were not involved in the slightest, as it insists it was, there’s clearly a perception among UAW members that the government remains a consistent presence in the auto industry.

The Honda share is edging closer and closer to its  2009 carmageddon lows. And guess who knows a good bargain when they see one? The Chinese. The Nikkei [sub] reports that a “stealth” Chinese fund has emerged as a major shareholder in Honda. Read More >

The Brazilian government must have borrowed several chapters from Vladimir Putin’s playbook on industrial policy. Reuters has it that the Brazilians are using the same strong-arm tactic as Russia: Invest heavily in-country and steep taxes on imported cars will go away. Don’t invest in Brazil and kiss your bunda adeus. Read More >

When American cops drive around with expensive iron, they claim they impounded it from a drug dealer fair and square, and all is good.  For some odd reasons, China hasn’t come to the level of vehicular expropriation yet. Their police gets its car the old fashioned way: They buy it. Imagine the consternation of the people in the port city of Tianjin, when they spotted a new Mini Cooper in police livery.  That car is imported, and a basic version starts at around $45,000. Read More >

From the first part of this clip from Bob Lutz and Elon Musk’s recent appearance on the Charlie Rose, in which the two discuss “The CO2 Thing,” you might guess that the two are at odds with each other. After all, Bob’s the gruff, “Global Warming is Bullshit” type and Elon is the sensitive, change-the-world type. But by the end of this brief clip, the two industry mavericks are falling all over themselves with mutual admiration. But then, both have learned from the other (however indirectly) over the past few years: Lutz’s legacy of the Volt was in part motivated by Musk’s endeavor, and Musk himself has a lot more respect for Detroit’s “old school” manufacturing know-how now that his firm is actually trying to build its own cars in volume. It’s a study in contrasts watching these two iconoclasts from such separate worlds going at it… and yet you get the distinct impression that these two guys aren’t quite as different as you might think.

Watch the complete Musk-Lutz interview here.

Watch Lutz’s one-on-one interview here.

The New York Times has a story that’s fascinating in its own right: the number of people leasing a car on leasetrader.com without first test-driving the car has doubled since 2007.  Troubling stuff for most auto enthusiasts among us, but probably not much of a surprise to readers on the retail side of the business. One auto broker explains the most common reasons for taking this leap of faith:

Generally these are people who know what they want, whether it’s because they’re very brand-loyal or they’ve fallen in love with the styling of a particular model. Same goes for buyers who are strictly interested in getting the best deal, and those with limited choices like a big family that needs a nine-passenger vehicle with 4-wheel drive.

But, as one “enthusiast” explains, some consumers are just so well informed, they don’t need to drive their car before they buy it. That’s what they subscribe to magazines for!

Read More >

Have you heard? The New Look Of Lincoln is coming, and everyone’s talking… about how much Lincoln has to prove. And after seeing these teasers, the topic will likely remain how much Lincoln has to prove. We’d probably better bite our tongues until the LA Auto Show, when the 2013 MKS and MKT actually take the stage; “teaser” photos can only convey so much. But given the wider “Lincoln situation,” it’s hard to imagine either of these new cars being able to fundamentally change perceptions of the brand. The Look Of Lincoln needs a clean-sheet reboot that I’m just not seeing here…

GM has made much of the fact that its Chevrolet Cruze compact has enjoyed strong sales this year, but volume alone isn’t enough to make it in today’s car industry. The key to profitability is keeping production in line with sales, so that plants don’t overproduce, in turn forcing profit-sapping incentives to move the metal. And, as these charts show, GM has been having success selling the Cruze, but not to the extent that it needs to keep production at its current levels. The graph above shows monthly production and sales levels for this year, and it shows that GM has already tried to adjust production once to keep it in line with slower-than-expected sales. But that wasn’t enough. With sales volume dropping the last four months in a row, and inventory jumping from 33 days to 43 days in the month of October alone, the UAW is reporting that the Lordstown plant where Cruze is built will be idled for the entire week of November 28. According to the announcement

The down week is necessary to align production with current market demand. The scheduling modification is attributed to traditional seasonal buying behavior coupled with competitors’ recovering inventories previously impacted by the March earthquake in Japan.

Like a lot of recent Detroit products, the Cruze has received a lot of positive press due to its giant improvement in quality and sales compared to its predecessor. But with demand softening, and GM’s brass fretting over profitability margins as the market shifts to smaller cars, it’s clear that the Cruze’s ultimate success has yet to be proven.

TTAC readers have suffered through my weird crush on Kia’s Picanto/Morning-based “Tam” for months now, patiently indulging my fascination with a car that’s so niche it won’t even be sold in Europe. But with Kia showing off these production images of what will be known as the Kia Ray, it seems that a lot of what I found so beguiling about this A-segment MPV will make it to production. What we’re looking at is a tiny A-segment micro-van, with the Picanto/Morning‘s 1.0 three-banger or 1.25 liter four. And, as we suspected based on early prototype shots, the car has three standard doors and one mini-slider on the passenger side, confirming that this funky little cube is half Kia Soul, half Hyundai Veloster. At a little over $11k, the Ray will also be a relatively cheap Kia, which is why it’s focused on Asian markets like Korea and China… but it’s probably too small to ever make it to the US or Europe. Scion is probably breathing a small sigh of relief…

The Chevy Volt fire rumors started early this week, when the utility company Duke Energy told its customers to stop using their Chevy Volt home chargers after an October 30 fire. At last word, NHTSA said that

No conclusions have yet been reached regarding the cause of the fire. We are continuing to monitor the situation.

But it seems that the investigation is coming home, as Bloomberg just reported that a Chevy Volt caught fire at a NHTSA facility, shortly weeks after being crash tested.

The Volt caught fire while parked at a National Highway Traffic Safety Administration testing center in Wisconsin, three weeks after a side-impact crash test, said an agency official. The official, as well as the three other people familiar with the inquiry, said they couldn’t be named because the investigation isn’t public.

The fire was severe enough to burn vehicles parked near the Volt, the agency official said. Investigators determined the battery was the source of the fire, the official said.

Ruh-Roh!

Read More >

With Saab’s latest MOU with PangDa and Youngman expiring on Tuesday, the heat is on for parent company Swedish Automobile (SWAN) to hash out the many problems and disagreements between GM and the proposed Chinese buyers. And now that it’s fairly obvious that a deal won’t happen, as GM and the Chinese Government seem fairly well set against it, the question is “what next?” How do you plan an endgame that should have been initiated months, if not years ago? That’s the challenge being considered by the few remaining shareholders in SWAN, who are meeting in Holland to pick through the none-too appealing options.

Read More >