Category: News Blog

By on September 26, 2011

Approval rating, based on the question “Do you think each of the following generally do a good or bad job of serving their consumers?”

Auto industry rejoice: you are no longer as despised as the banking industry! Harris Polls didn’t release data for the years 1999 and 2010 exaggerating some of the swings you see in this graph, but it’s safe to say the auto industry has clawed its way out of a post-bailout PR hangover. Sure, Big Auto is still trailing such glamorous industries as Online Retail and Packaged Food, and only barely beat Electric and Gas Utilities for the hearts of consumers… but after nearly falling into negative approval numbers in 2009, this is still a big comeback. And compared to the industry that Big Auto is most closely tied to, namely Big Oil, even 2009 was a “what PR problem?” kind of a year. Which is more than a little strange when you think about it…

By on September 26, 2011

[Editor’s note: the following block-quoted passages were sent to us by an enterprising anonymous tipster (italicized passages were quoted in the original from linked sources). I’ve decided to let the argument speak for itself, and simply interject a few thoughts (non-block-quoted) towards the end.]

On their Q2 earnings call, GM gave this presentation [PDF] and made the following claims:

“On Slide 12, we provide what we view as key performance indicators for GM North America. The 2 lines on the top of the slide represents GM’s U.S. total and retail share. The bars on the slide represent GM’s average U.S. retail incentives on a per unit basis. Now U.S. retail incentives as a percentage of average transaction price and compared to the industry average is noted at the bottom of the slide.

“For the second quarter of 2011, our U.S. retail share was 17.6%, up 1.3 percentage points versus the prior year and down 0.6 percentage points versus the prior quarter due to the absence of the first quarter sales programs. Our incentive levels on an absolute basis have declined significantly from the prior year as well as sequentially. On a percentage of ATP basis, our incentives were 8.9%, down 2 percentage points versus the prior year. This puts us at approximately 103% of industry average levels for the second quarter of 2011, flat versus the prior year.

“In terms of incentive levels, our plan continues for us to be at approximately the industry average for the year on a percentage of ATP basis. These results for share and incentive demonstrate the impact of our plan to produce great vehicles the customers are willing to pay for.”

I did not try to verify the first part of the highlighted claim (that incentives have declined compared to previous year totals), but the second part of the claim (that incentives have declined sequentially) is demonstrably false.

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By on September 26, 2011

Are car buyers rational? Anyone who deals with car-shopping consumers on a regular basis would probably answer with a hearty “no.” In fact in my experience, helping prospective car buyers navigate the many considerations and options available on the market usually ends with me throwing up my hands and saying “if you like a car, just buy it.” But according to research cited by Wired’s Jonah Lehrer, conscious reasoning might not be the ideal way to shop for a car in the first place. Sometimes “going with the gut,” and making a decision without thinking it through is the best way to solve complex choices like finding the car that’s perfect for you.

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By on September 26, 2011

When Lansing Senator Debbie Stabenow sent her most recent routine letter to U.S. Trade Representative Ron Kirk, complaining that the nasty Chinese want to get their greedy hands on the super-secret electric vehicle know-how of Ford and GM, both manufacturers protested. Against the assistance from Ms. Stabenow. Ford and GM said that “they have no plans to build electric vehicles in China.” At least that’s how the Detroit News heard it. Either the DetN was misinformed. Or GM and Ford quickly changed their minds. Or they just wanted Debbie off their backs. Ford and GM both want to make EVs in China. Read More >

By on September 26, 2011

Now that Lincoln’s got a new chief designer and a standalone design studio, what can we expect from the new look of Lincoln? Automotive News [sub] reports

Love it or hate it, Lincoln’s waterfall grille is on the way out, according to sources familiar with plans for the updated MKS sedan and MKT crossover coming next spring.

One source said the MKS and MKT grille will be “completely different” from the current grille, which has been controversial. He said the new grille is “not as pronounced” as the waterfall and “more elegant.”

So, other than the death of the “waterfall” (aka “baleen,” aka “the Hannibal Lecter”) grille, what can we expect from the updated MKT and MKS? Not much in terms of interior or exterior design, it seems. Instead, Lincoln will focus on steering, braking and suspension systems to differentiate its products from Fords. I know, maybe they can use the tagline “Drive One”…

By on September 26, 2011

China, U.S.A., Brazil. This is how Roland Berger Strategy Consultants see the ranking of the world’s largest car markets by 2015.

Within four years, the consultancy expects Brazil to kick Japan off the podium and become the word’s third largest car market. Car sales in Brazil could double between 2010 and 2020 to 6.6 million vehicles; production may rise by 3.6 million cars in 2010 to 5.5 million. Read More >

By on September 26, 2011

It used to be that Toyota left the kei car minivehicle market to its Daihatsu division, but no more: Today saw the Japanese launch of the first passenger minivehicle to be sold under the Toyota brand. It’s called the “Pixis Space” and putters along on a 40 cubic inch engine. Read More >

By on September 26, 2011

 

 

John writes:

I have a 1989 Mercedes 300CE. Fantastic car, if I’m honest and it has made me fall in love with straight-6’s as well as old school German solidity. Not to mention it is nice having the only seafoam green Mercedes I have ever seen, making it incredibly unique. That being said, in the 6 months that I’ve owned I’ve had to put almost two thousand dollars into it for various wear parts. While it is to be expected with a 22 year old car of any ilk, the added cost of owning a European car have begun to take their toll I’m afraid.

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By on September 26, 2011

Under Penske management, the Smart minicar brand sold fewer than 6,000 vehicles last year, capping a sales decline that led Mercedes to take back management duties for the brand. And, according to the new folks in charge of Smart, there’s only one real problem with the brand: awareness. Or, more precisely, lack thereof. We’ve heard this song before from Smart’s new GM, but now Ernst Lieb, boss of Mercedes U.S.A., is picking up the tune, telling Automotive News [sub] that

With the marketing activities that we’re going to have, we’ll see some positive momentum. The biggest problem the car has right now: Nobody knows it.

Which, of course, is nonsense. Nonsense that allows you to appear aware of the sales problem without acknowledging a single problem with the product itself, but nonsense none the less. And Smart’s not the only micro-car brand that’s reaching for it either, as Fiat-Chrysler marketing boss Olivier Francois has the exact same excuse for Fiat’s weak start, telling AdAge

I don’t think we have a car problem; people love the car. I think we have an awareness problem.

Are Americans incapable of seeing, recognizing or being aware of anything that weighs less than 3,000 lbs? Or is it possible that there are a few things wrong with the Smart and 500?
Read More >

By on September 26, 2011

This must be the oddest story of the day: According to conventional wisdom, the South Korean market is pretty much closed to American cars. “Not so,” says a company that makes a lot of cars in the U.S. The odd part: The company is Japanese. It’s Toyota. If The Nikkei [sub] has its facts and sources together, then Toyota will export Kentucky-made Camrys to South Korea. Read More >

By on September 26, 2011

Photo enforcement advocates downplay the benefit of increased yellow time in addressing the problem of red light running. New evidence from Arnold, Missouri shows that red light cameras continue to flash at a much lower rate since the state mandated longer signal timing at a number of photo-enforced intersections.

Arnold was the first jurisdiction in the Show Me State to allow a private company, American Traffic Solutions (ATS), to mail traffic tickets to residents. Since 2005, ATS has handed out more than 30,000 tickets worth over $3.1 million. In 2010, tickets were being pumped out at an average rate of 800 per month. With longer yellows, that figure averaged just 113 through July and August using the most up-to-date data available.
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By on September 26, 2011

Pronounced near-dead in 1999, Nissan has made a remarkable, but often unnoticed turn-around ever since. With little fanfare, the Yokohama company passed Honda as Japan’s second largest auto maker. In China, the land of car growth, Nissan sold 1.3 million cars last year, became largest Japanese brand and has expansion plans for 2.3 million.  Nissan is also the company that recovered fastest from the March 11 tsunami. With only 25 percent of its world output in Japan, Nissan had less exposure that Honda, and especially Toyota. It also was lucky: Nissan could duck the chip shortage that hit Toyota and Honda with full force. Nissan’s engine factory in Iwaki is 60 miles away from Fukushima. A little closer, and it would still be closed. Instead, it was back up and running two months after the disaster. One of the most horrific years for Japan and the Japanese auto industry is shaping up to be the defining year for Nissan. Nissan’s biggest problem: Not enough cars. Read More >

By on September 26, 2011

WARNING: If you have any track experience, or even if you don’t, the above video can be painful to watch. It’s the long-legged Monticello Motor Club racetrack as experienced by the IMPA journalists on their test day: coned off, watered-down, speed-limited. Had I made the 584-mile drive to Monticello and found conditions like this, I’d have been furious.

Still, the above restrictions weren’t enough to keep the Korean journalist, identified to me as Tai Sung “Peter” Park, from wiping an IS-F against the guardrail. What followed that incident was an odd tale of international misunderstanding, possible deceit, and Keystone Kops silliness…

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By on September 25, 2011

Editor’s note: When I wrote about OnStar’s latest round of privacy concerns, I didn’t realize that the chairman of the Senate Judiciary subcommittee on privacy, technology and the law had voiced his own concerns in a letter published just the day before. Here is the letter, as published at Senator Franken’s website. OnStar has already said it will respond to specifically to the concerns of Senators Franken and Coons.

Ms. Linda Marshall, President
OnStar Corporation
400 Renaissance Center
Detroit, MI 48265

Dear Ms. Marshall:

We are writing to express our serious concern with OnStar’s announcement earlier this week that it would continue to track the GPS locations of its customers’ vehicles even if those customers have affirmatively ended their contractual plans with OnStar.  In this email announcement, OnStar informs its current and former subscribers that it reserves the right to track their locations “for any purpose, at any time.”  It appears that the only way to stop this tracking is to actually call OnStar and request that the data connection between OnStar and the vehicle be terminated; this service is not available online.  OnStar further reserves the right to share or sell location data with “credit card processors,” “data management companies,” OnStar’s “affiliates,” or “any third party” provided that OnStar is satisfied that the data cannot be traced back to individual customers.  See OnStar, Privacy Statement: Effective as of December 2011.  In a nutshell, OnStar is telling its current and former customers that it can track their location anywhere, anytime—even if they cancel their subscriptions—and then give or sell that information to anyone as long as OnStar deems it safe to do so.

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By on September 25, 2011

When word first began circulating that BMW was considering an X4, I wondered

is BMW trying to prove a kind of automotive Zeno’s paradox, in which niches can be infinitely subdivided?

It was a rhetorical question, of course, and the answer was “pretty much, yeah.” This official BMW sketch preview of the X4, which has been approved for production, shows a three-door version, but according to Autocar,

The car is also depicted in a pair of official BMW sketches. Although they reveal a three-door model badged X3, they hint strongly at the X4’s design, mainly its roofline and front-end styling; BMW sources insist that too much shouldn’t be read into the fact it has three doors.

But if MINI and Range Rover already have three-door “sport activity coupes,” isn’t it just a matter of time before Audi or Mercedes jump on the trend, forcing BMW’s hand? The only problem: there’s only one number between X3 and X5. Which means we will probably end up with an X4 xDrive28i (say) and an X4 xDrive28i Coupe. You know, the coupe version of the coupe version of the X3. Or maybe they’ll just move on to the inevitable X2 coupe version of the X1 and leave the task of trying to tear logical holes in space-time to the crazies manning the supercolliders.

 

 

 

 

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