Derek Kreindler’s provocative defense of the Maserati Kubang sparked off an interesting discussion among TTAC’s Best and Brightest yesterday, about the the macroeconomic outlook for luxury brands. Sure, the American economy is struggling to stay out of a double-dip recession, credit is no longer as available as it was in the pre-Lehman days, and some argue that worse is still to come… but for the moment, the high end of the luxury market couldn’t be doing better. Rolls-Royce CEO Torsten Mueller-Oetvoes tells Reuters [via AN [sub]] that his brand will set a new sales record this year, and that the outlook for 2012 is good, saying
I have not seen any reluctance to consider buying a Rolls-Royce. I do not feel that sentiment is deteriorating in the luxury market. We are dealing with people who are unusually wealthy and never really have to ask themselves, can I still afford this or not?
And it’s one thing to just talk, but Rolls is also putting its money where its mouth is, initiating a $16m expansion to its Goodwood plant. And it’s not the only luxury brand that seems to be confused about this “recession” that the peasants keep going on about…
[Ed: The above video is not intended as a specific example of the problems we faced, but a general illustration of the wider issue]
While on a junket for the Hyundai Veloster I was treated to yet another instance of The Most Infuriating Thing About New Cars – the lack of any decent way to connect your iPod to the in-car entertainment system.
As TTAC Editor-In-Chief Ed Niedermeyer and I toured Oregon’s various scenic byways in the newest Hyundai, our musical selections were repeatedly interrupted due various errors, whereby Ed’s iPhone was unable to sync, refused to completely sync, or randomly re-synced. Our attempts at listening to the new Bon Iver album, or Burn After Rolling (the listenable mixtape made by limp-dick rapper Wiz Khalifa) were interrupted by a blast from XM’s pop station, as the iPod integration took a giant shit on us. Nothing spoils the conversation like having your ambient rock or gangsta rap interrupted by Katy Perry or Lady Gaga.
The United Auto Workers and the Detroit automakers have been locked in negotiations for months now, as both sides seek to redefine their relationship in the post-bailout era. And though all sides have stressed the importance of avoiding intractable disputes in an alleged new spirit of cooperation, it seems that the prospects of a quick, painless conclusion to negotiations remains elusive. The UAW’s contracts with Chrysler and GM both blew past their deadlines at midnight last night, and Ford, the only manufacturer at theoretical risk of a strike, extended negotiations earlier this week. TTAC has not covered these negotiations in much depth for the simple reason that little information leaks out of them. But with contracts expiring and optimistic rhetoric crashing on the rocks of reality, the frustration is clearly starting to boil over. And who is surprised that Fiat-Chrysler CEO Sergio Marchionne is the first to let his frustration show?
Toll roads at one point appeared to be unstoppable. Steady growth in traffic yielded rapidly rising profits, especially for pioneers in the field such as Australia’s Macquarie Bank where executives became so rich from deals that included the leasing of US roads that it was dubbed the “millionaires’ factory.” That all changed when the recession took hold and motorists scaled back on the mileage driven each year. Losses began to mount, and as a report released last week by Fitch Ratings argues, the dynamics for tolling may not improve in the near future.
“Fitch tracks data on toll roads, bridges, and tunnels across its ratings portfolio,” Fitch analysts wrote in the report, Downshifting: US Transportation Reacts as GDP Growth Flattens. “Traffic declined year over year as much as 10 percent during the Great Recession. Sustained positive growth in traffic commenced in February 2010. The most recent Fitch data indicates that growth in traffic volumes began slowly declining on tolled facilities, heading to zero growth in second-quarter 2011.”
Will those guys at Generous Motors ever learn? When you play with a snake…. you eventually get bit.
They are trying to hide the news at the Corvette Forums, but like the horsepower in their supercharged small block… it’s too much to handle.
The word is out , let the crying and the excuses begin.
There’s no “official” word yet about it, but it appears that a new-old-stock 2010 Viper ACR, pulled off the floor at Tomball Dodge, has run a 7:12 “and change”.
I received a brief but telling email from Mr. Hussam Adeni about a previous Piston Slap. The attachments he sent were an eye opener for someone as chemically challenged (so to speak) as yours truly. As you can see from the man’s resume, this won’t be a discussion for the faint of heart. But let me try anyway, it is a great read if you can channel your inner geek long enough in this age of twitter and rapid fire auto-tuned pop sensations. Read More >
Despite saber-rattling, legal threats and affirmations that Volkswagen does not intend to give up its share in Suzuki, Volkswagen started its climbdown. Ferdinand Piech himself signaled that Volkswagen can go it alone. At the Frankfurt Auto Show, Piech said that Volkswagen is “big enough.” His man Winterkorn quickly fell in step and told Reuters today: “”Suzuki was one option. But we can do it on our own.”
That should be signals enough for everybody at Volkswagen to put the Suzuki saga behind themselves and to concentrate on other pressing business, such as the messy Porsche merger.
Back in Tokyo, The Nikkei [sub] wrote what seems to be Suzuki’s version of the story. Read More >
My wife is currently in the market for a new car. Our current garage consists of her 2008 Ford Explorer XLT Ironman Edition V8 that gets a dismal 16 MPG in mixed driving, and my beloved 2010 G37S 6MT that I love in every way, and gets a decent 22 MPG in mixed driving when I’m not laying into the throttle. The Explorer is paid for, and while I mentioned selling it to buy whatever she wants, she’s having none of it, as we do tow with it every now and then and she has an attachment to Explorers. This is her second Ex, RIP 2002 Explorer @ 210k miles. Currently we’re looking at a few cars. She needs room, so a hatch is preferred.
Mini Cooper S Countryman
Lexus CT200h
Toyota Prius
Any suggestions? Price isn’t an issue and we plan to keep it for a while. Many Thanks. Bryant S
Paul Fussell’s brilliant book Class describes a BMW as a car for an upper-middle class professional, while a Mercedes-Benz is too ostentatious. The true upper-class vehicle is a beige Dodge or Ford, generally filthy and driven at 10 mph under the speed limit.
Fussell’s book was first published in 1983, and I’ll give one of my favorite authors the benefit of the doubt – not even such an astute and visionary social critic could anticipate the massive explosion of (credit fueled) affluence that has swept our society. Today, a Mercedes-Benz can be leased for the same cost as a Honda Accord, a BMW is what you buy for your daughter, and a Dodge isn’t even fit for your maid to drive. Which brings us to the Maserati Kubang.
Volkswagen will almost certainly finish the year as the second-largest automaker by volume… and if it wants to take the top spot, it will do so on sales, not acquisitions. Having gobbled an extraordinary number of acquisitions over the past several decades, including Bentley, Lamborghini, Bugatti, Italdesign and Karmann, VW’s monstrous appetite appears to be waning. And no wonder: the latest mouthful, a partnership with Suzuki, has gone sour and recent lustful glances at Alfa have drawn sassy rebukes from Fiat’s Sergio Marchionne. Accordingly, VW’s Chairman Ferdinand Piech tells Bloomberg [via AN [sub]] that no more acquisitions are planned and that
We’re big enough
Of course, this is also coming from the company that’s been struggling to swallow Porsche for the last several years. Once that deal is complete, we’ll check back on Herr Piech’s appetite. Because in an industry built on scale, you never know when hunger will strike…
Last month, a group calling itself the National Coalition for Safer Roads (NCSR) obtained a great deal of exposure for red light cameras through the “National Stop on Red Week” publicity campaign. Several police departments around the country participated, with most news reports treating the issue as a public service announcement. Documents show the group coordinating this effort, NCSR, is controlled exclusively by the photo ticketing firm American Traffic Solutions (ATS).
Dieter Zetsche and Carlos Ghosn had their intimate luncheon with selected members of the Fourth Estate today. It took place in the not so fancy, but highly convenient Maritim Hotel, which has a prized asset: A private entrance to the Frankfurt Motor Show. It, and the Marriott across the street, are the hottest properties in Frankfurt during Motor Show days. The TTAC-dispatched fly-on-the-wall reports from the luncheon: Read More >
Daimler and Nissan may announce some serious platform sharing, t.b.a. either today or tomorrow on the sidelines of the Frankfurt Motor Show. Bloomberg has heard that Daimler “is considering sharing its small-car platform with Nissan Motor Co.’s Infiniti brand.” Read More >
Do you remember what you were doing in 1978? I bet the folks at Maserati do: they were building the final production run of the Bora, the last Maserati that anybody with any taste whatsoever genuinely wanted. A tidal wave of utter garbage followed, from the Biturbo flambé and its many bizarre successors to the current Quattroporte and GranSport which rely on $999/month leases and puff-pieces from deeply unethical individuals to move the metal. The company’s mistakes, mis-steps, and misfires have rendered it almost beyond the Pale of critical appraisal; evaluating Maserati or its products honestly soon takes on a strong whiff of maliciously stomping a dying insect.
Yet let me flap this bug with gilded wings: it appears that Maserati has finally decided to inflict a sport-utility vehicle on the world at large. Presumably this was because doing a Maserati “Pet Rock” was seen as being insufficiently gauche, and plans for the company to participate in “Hands Across America” fell through due to lack of organizational capability. Seriously. A luxury SUV? In 2011?
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