Toyota will allegedly launch a new compact hybrid in January that will deliver a record low gasoline consumption of 40 km per liter. On a straight (non EPA) conversion, that would be a jaw-dropping 94 miles per gallon.
What’s less, the car “will not only beat the Prius’ 32km fuel economy, but also likely sell for around 1.7 million yen, around 300,000 yen cheaper than the Prius,” says The Nikkei [sub]. Read More >
If anyone again mentions that the Japanese manipulate their currency to get an unfair advantage in international markets, then I will strangle him. Or make him pay my Tokyo restaurant, taxi, and even subway bills in converted dollars. Strangling would be the more humane punishment.
Nissan CEO Carlos Ghosn has an even more painful option in store: He’ll leave the island. “If the Japanese government wants to really safeguard and develop employment, then something has to be done,” Ghosn told Reuters editors Paul Ingrassia and Kevin Krolicki in an interview in New York. Read More >
The Detroit News‘s David Shepardson has a way of being on hand with a microphone whenever GM CEO Dan Akerson lets loose with a memorable line, and today he has Akerson telling a Bloomberg News Forum that the green star of the American auto turnaround, the Chevy Volt, could be built in China within a few years. Said Akerson
We’re going to export into China for probably a year or two and see if it gets a take … if customers set the right usage patterns. If it does, we may manufacture it there.
There are two extremes when it comes to minivan buyers. There are those who want all the options and knick-knack’s checked and marked for their next Mommy-mobile. Automatic dual sliding doors. DVD systems that can offer a continuous loop of ‘Barney’. Fortress like levels of safety and space combined with enough airbags and sound insulation to make even the worst of traffic a passing thought.
Then there’s the buyer for this minivan.
As I noted in the comments of this morning’s piece on the Ford Bailout ad controversy, if the White House did contact Ford about the ad and the company did take down the video in response to the pressure, it certainly wouldn’t admit as much. After all, the whole point of caving to White House pressure would be to defuse, not inflame, a political standoff. And sure enough, one hour ago, Ford reposted the video (currently with around 300 views) and shared it on its Facebook account. Ford says the ad “ran as part of a planned rotation and continues to run online,” predictably avoiding any reference to reports of White House concern. And though the low view count proves that Ford took down, then reposted the video, a Youtube message to the uploader of what earlier today was the only remaining version on Youtube reveals that mainstream media news reporters were unable to find other copies of the ad.
The White House has not yet commented on the situation, but hit the jump for more details on Ford’s curious response…
One of the legacy costs that GM was not able to reduce in the bailout was pension costs, a whopping $128b obligation as of the end of 2010. And though the plan is “only” underfunded by $10.8b at the end of June according to GM, Kenneth Hackel, president of CT Capital LLC (and author of two textbooks on valuing securities) recently told Bloomberg
The financial risk because of [GM’s pension liability] is higher than people understand. The cold reality is if you used a conservative discount rate and you wanted to close out the plans, you would have to raise about $35 billion.
With GM’s market cap sagging into the low-$30b range (currently around $34b), the risk of pension liabilities growing larger than GM’s market capitalization is very real. And as lower interest rates and a weak stock market reduce pension fund returns, the obligations grow, in turn putting pressure on GM’s stock price. And it’s not like nobody saw this coming: a GAO report released in April 2010 issued dire warnings about the state of GM and Chrysler’s pension obligations. Now, according to the ace reporters at Reuters, GM and the UAW have hashed out a buyout deal giving workers the option of being bought out of their pensions. Which has us dying to know: what’s a UAW pension worth in cash?
At the Frankfurt Auto Show, when all the festivities and pageantry are over, it is customary to stroll through the booths, stands and halls of the competition to find out what they have. The real research is done by faceless drones that pose as journalists or customers. The drones must have brought back alarming intell to Halle 3, where Volkswagen holds court: “Ach du mein Lieber, Hyundai fielded a fearsome adversary to the Golf with the new i30.”
The whole white-haired Volkswagen board dropped their coffee cups and invaded the Hyundai display, led by Prof. Dr. Winterkorn, CEO of Volkswagen. Winterkorn himself sat behind the wheel of the i30. The former head of Quality Assurance was shocked: Read More >
Under attack from privacy advocates and US Senators, Onstar will be dropping plans to automatically track vehicles that are not subscribed to its service, and will make post-cancellation tracking an opt-in option, rather than opt-out. A GM statement reads:
DETROIT – OnStar announced today it is reversing its proposed Terms and Conditions policy changes and will not keep a data connection to customers’ vehicles after the OnStar service is canceled.
OnStar recently sent e-mails to customers telling them that effective Dec. 1, their service would change so that data from a customer vehicle would continue to be transmitted to OnStar after service was canceled – unless the customer asked for it to be shut off.
“We realize that our proposed amendments did not satisfy our subscribers,” OnStar President Linda Marshall said. “This is why we are leaving the decision in our customers’ hands. We listened, we responded and we hope to maintain the trust of our more than 6 million customers.”
If OnStar ever offers the option of a data connection after cancellation, it would only be when a customer opted-in, Marshall said. And then OnStar would honor customers’ preferences about how data from that connection is treated.
Maintaining the data connection would have allowed OnStar to provide former customers with urgent information about natural disasters and recalls affecting their vehicles even after canceling their service. It also would have helped in planning future services, Marshall said.
“We regret any confusion or concern we may have caused,” Marshall said.
Dave writes:
Hello Sajeev and Steve,
First time writer, long time reader; I must say, TTAC and Piston Slap rocks.
My wife and I are in a bit of a quandary. We currently own outright a 1997 Chevy Monte Carlo 3.1L LS with 197k miles and counting as well as a 2003 Chevy S-10 Blazer LS with 145k on the clock. Lately, we have been sinking money into the Blazer for everything from brakes, to shift solenoids, thermostat, intake manifold gasket and crankshaft position sensor (soon to be O2 sensor). I have been driving the Monte since senior year in high school (2004) and it has also had its share of problems, namely Dex-Cool and the ensuing broken conn-rod. The engine was replaced with a rebuilt Jasper at 117k. The dash is lit up like a Christmas tree, but I change the oil religiously and watch the other liquids and wear parts.
I have a confession to make: I am experiencing a struggle in my life. Normally, when middle-aged male church musicians say that, they mean they are secretly thinking about visiting a San Francisco bath house and rocking out with certain appendages fully visible. In my case, however, the desire to squeeze myself into something young, tight, and not quite masculine is entirely automotive. I’m talking about the Mazda2, of course.
The Mazda2 holds a title that’s important to me personally, even if it doesn’t exactly cause examples of the model to depart dealership lots with a Saturn V’s worth of force: it’s the lightest, simplest four-passenger small car money can buy. The MINI, Fiesta, and Sonic all outweigh it by a Roseanne Barr or more. Even the new Accent and FIAT 500 can’t quite match it. Hilariously, even the Miata outweighs the 2.
To help shove the littlest Mazda off the floorplans, Mazda is currently offering 0% financing. For five years. That’s right: if you can pay your own sales tax up front, it’s possible to have a new 2 for $233.38 a month. Is it worth doing?
The Viper Club of America is keeping up the suspense with its Viper Nordschleife record run. Now, we have a video (see above) and what appears to be 7 minutes, 12 seconds and 130. But very little else in terms of official announcement. Folks: It needs a start to finish on-board video, and an official press release about the equipment, tires etc. Update: Thankfully, Chrysler provided the press release … Read More >
[UPDATE: Ford has restored the video to Youtube. More details here.]
Detroit News columnist Daniel Howes reports in a column that Ford has pulled its controversial “bailout ad” after the White House asked “questions” about it. And apparently the take-down decision makes this a threatened piece of footage: in addition to yanking the spot from the airwaves, the version of the video we posted two weeks ago has been taken down from YOutube as well [a home recording of it can still be found here]. So what happened that Ford would throw its most popular ad in ages down the memory hole? Howes is cryptic…
Ford pulled the ad after individuals inside the White House questioned whether the copy was publicly denigrating the controversial bailout policy CEO Alan Mulally repeatedly supported in the dark days of late 2008, in early ’09 and again when the ad flap arose…
With President Barack Obama tuning his re-election campaign amid dismal economic conditions and simmering antipathy toward his stimulus spending and associated bailouts, the Ford ad carried the makings of a political liability when Team Obama can least afford yet another one. Can’t have that.
Read More >
The Japanese car market is in the midst of the worst crisis since 1978. The Japan Automobile Manufacturers Association expects auto sales in Japan to fall to a 34-year low in the current fiscal year that ends in March 2012. This as a result of the severe production drop, triggered by the March 11 earthquake and tsunami. Read More >
A Florida law prohibiting the blasting of loud music from automobiles violates the first amendment, the Florida Court of Appeals, Fifth District, ruled on September 16. Shannon Montgomery had been driving in Marion County with his tunes “plainly audible” from a distance of twenty-five feet, contrary to the statute. He was pulled over and police eventually discovered he was carrying cocaine and marijuana.
Montgomery moved to suppress the evidence against him, arguing state law used to justify the traffic stop was overly broad and that “plainly audible” is an arbitrary standard. The appellate judges disagreed.
Japanese customers can now buy the facelifted Mazda3 with its fuel-efficient SkyActiv technology. Except that it’s called Axela in Japan and has the steering wheel on the wrong side. Pretty much everything that needs to be said about the car already has been. If you missed it, here is the English version of the Japanese press kit. (Now how is that for service?) Mother of all Mazda3 picture collections follows.
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