Category: News Blog

By on July 12, 2011

The US car market contracted by 23 percent between the 2006 and 2010 model-years according to WardsAuto data [via the Detroit News], but over the same period the total number of hatchbacks sold per year has increased some 63%, from 291,853 to 475,048. That’s right hatchback fans, after decades of underachievement in the US market, your favorite bodystyle is back in a big way.

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By on July 12, 2011

Joana writes:

I am sure you get this all of the time…my apologies in advance. I am replacing my VW Passat 2003 GLS. It was fun to drive, but had its issues as we all know. No sludge thank goodness. Several leaks! I would like a car that is comparable in drivability, (I have a manual but will buy an auto this time), but better in reliability, and perhaps greener. Tell me what to buy please! I have read the reviews, but they are all over the place….I wish you had a favorites list! Thank you.

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By on July 12, 2011

When a brand like Aston-Martin releases a new car, it’s de rigeur to assemble some cameras and hand out a freebie to a legend of the motoring world. But when a brand like Aston-Martin creates a deeply controversial car like the Toyota iQ-based Cygnet, the luminaries of road and track are hardly going to be lining up  for the thing. Luckily if you ask nicely enough, they might be convinced, as apparently Sir Stirling Moss was, to re-gift the thing to the wife. That way he doesn’t have to endure the embarrassment of driving the thing, but Aston still gets to hype the fact that the Sir Stirling said

Since seeing a pre-production Cygnet in January I knew that it was the perfect car for Susie; a proper little piece of British luxury and perfect for our life in town.

Unfortunately, as Pistonheads points out, the Cygnet isn’t even exempt from London’s congestion charge… which is typically an important criteria for a car to be “perfect” for life in London town. Oh, and it’s about as British as yakisoba. But hey, Sir Stirling “bought” one for his wife so…. um… yeah.

By on July 12, 2011

Police are not alone in the ability to secretly use GPS devices to track someone without his knowledge, the New Jersey Superior Court’s Appellate Division ruled Thursday. A three-judge panel made this decision in the context of a privacy invasion suit brought by Kenneth R. Villanova against Innovative Investigations Inc after his now ex-wife hired the private-eye company to spy on him. She intended to document alleged infidelities prior to filing for divorce in May 2008. At the firm’s suggestion, Villanova’s wife installed the tracking device on her husband’s GMC Yukon-Denali which followed the vehicle’s every move for forty days.

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By on July 12, 2011

Can one dramatically increase customer satisfaction ion the course of three weeks? Yes, you can! How? Simple: Just get a different survey.

Three weeks ago, acid reflux, shouting matches and massive finger pointing were rampant at car companies like Volkswagen and Ford. On J.D.Power’s Initial Quality Study (IQS), Ford had landed (with a thud) on rank 23, and Volkswagen crashed to #29, outdone in measured mediocrity only by Mitsubishi, Suzuki, and Dodge.

Now, all is fine again. Read More >

By on July 12, 2011

The Volkswagen Passenger Cars BRAND ( not the Group) reports global sales  of 2.53 million for the first six months of 2011.- Compared to the same period of 2010, this is an increase of 11.8 percent. The brand also reported an increase for the month of June, with 438,500 vehicles sold. For a gain of 9.8 percent compared to June 2010. With Audi having grown 17.7 percent in the half year, the Volkswagen Group will most probably report a nice double digit gain for the first half year. Read More >

By on July 11, 2011

I never thought it would happen, particularly after a long few years of mercilessly criticizing every overpriced, cynically-conceived, cost-cut piece of garbage Porsche has released in the past few years, but as I stepped off the plane in Frankfurt this morning for a completely exclusive, embargo-busting preview of the 911 GT3 RS 4.0 in the Black Forest, followed by a full-throttle attack of the only racetrack in the world that really matters (the hallowed Norfschleifegarten) I knew that all had been forgiven and that I would be able to share all the details with you about the fastest, finest, just plain best 911 in the nameplate’s storied history: the awesome 2012 911 GT3 RS 4.0.
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By on July 11, 2011

After a brief commercial, the video above shows you… a brief commercial.
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By on July 11, 2011

Earlier today Bertel noted that the UAW’s goal of organizing “at least one” transplant automaker could be motivated by a desire to earn “brownie points” from the Detroit automakers. But the question that has remained unanswered ever since the union announced its transplant campaign is “which automaker will let the UAW into its plant?” Now that question may have its answer, as Automotive News [sub] reports:

Volkswagen AG and the UAW have intensified discussions about organizing workers at a new plant in Tennessee, German newspaper Handelsblatt reported in a preview of an article that will run Tuesday.

The newspaper, citing Volkswagen officials, said the union and automaker have held meetings and a workshop over the matter in the past few weeks.

VW insists that talks are still preliminary, and that no organizing campaign has yet begun. But, say the UAW, VW’s long tradition of worker unions “more willing to talk to unions about representation.” Ultimately VW says the decision to organize “belongs to our workers alone,” which implies a lot more openness to organization than Honda, for example, has indicated. But Southern workers seem to be largely ambivalent towards the UAW, so just because VW could let organizers into the plant doesn’t mean workers will necessarily vote for union representation. Meanwhile, there’s no word on how a possible UAW organizing campaign could affect a possible new VW/Audi assembly and engine plant that is being considered for the US according to AN [sub]. With Audi execs insisting on the need for more US production capacity, a UAW win in a Volkswagen vote could have serious implications for the firm’s future expansion.

By on July 11, 2011

When the White House opened negotiations over the next round of CAFE regulations for 2017-2025, I reckoned the automakers and regulators were “working in nearly unprecedented harmony.” Well, not so much any more. The WSJ [sub] reports that, although work on “the big number” is proceeding well, in the words of IHS Automotive’s Michael Robinet

This becomes a lot more politically divisive as they become much more specific in terms of the footprint of the vehicle.

In short, the original sin of CAFE, the two-tier system that drove SUV “light truck” sales and saw the creation of “trucks” like the PT Cruiser and HHR, has returned to haunt the latest round of negotiations. And, according to the WSJ, Japanese and Korean manufacturers are complaining that the new rules will motivate consumers to buy less-efficient offerings, and in turn give the Detroit manufacturers an unfair advantage. The kumbayas are over, and the gloves are off… but just how unfair are the newly-proposed rules?

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By on July 11, 2011

GM still won’t comment on the matter, but a recent rumor that the Cruze’s two-liter diesel engine will be federalized for the 2013 model-year has been confirmed to the AP [via the DetN] by “two people briefed on GM product plans.” That motor, designed by VM Motori and built since 2006 by GM-Daewoo, was recently updated to Euro 6 standards, and according to the Holden website, the Australian-spec version makes 160 HP (at 3,800 RPM) and 236 lb-ft (at 1,750 RPM), while returning 42 MPG (combined with manual transmission) or 35 MPG (combined, automatic). Of course those aren’t EPA numbers, and they could easily change by the time the engine is certified for US emissions standards.

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By on July 11, 2011

[Editor’s note: The video above depicts a Penske-era Smart ad. The new Mercedes-led marketing effort begins this fall]

Having taken over sales and distribution of the Smart brand from Penske and canceled a planned Nissan Micra rebadge, Mercedes is trying to inject some life into its flagging city car brand (Sales are down 24% YTD, at 2,556 units) with a new marketing campaign (coming this fall) and finance offers. Smart’s new General Manager Tracey Matura explains the problem to Automotive News [sub], saying

People are not avoiding the brand or the product, but there is a great majority of people who are not aware of the brand

Really? People don’t know or notice a brand that’s in its fourth year of US sales, offering a car that’s unlike any other on the market? It seems to me that the problem isn’t awareness, as the term “Smart Car” is almost universally synonymous with “hilariously tiny car,” even among non-expert consumers. The problem seems more precisely to be that Smart is neither as cheap nor as efficient as larger rivals, and American consumers are constitutionally resistant to the idea of paying more for less (a point that VW seems to be proving in spades). More promising: $179/month lease and finance deals backed by Mercedes-Benz Financial Services, not to mention the decision to ditch the snottier-than-thou Penske campaign embedded above. But even new ads and good deals aren’t likely to make Smart a truly viable brand in the US until new product arrives in 2014, hopefully in a more efficient, enjoyable-to-drive form. Or unless gas prices spike again, causing a 2008-style rush for conspicuously downsized vehicles.

By on July 11, 2011

With a new generation of BMW 3-Series on the way, you expect to see plenty of photos of it testing on the Nürburgring’s Nordschleife. What you don’t expect to see: photos of it being towed through the “Green Hell.” According to Auto Motor und Sport, this prototype’s breakdown on the ‘ring is “unusual at this stage of development,” but the German publication notes that the defect that caused it is unknown. They simply write that, in the midst of a test drive, the next-gen Dreier “ran out of breath.”  Hopefully the boys at BMW will be able to suss out the problem before the new Dreier launches in Europe next year… nobody likes to see a car like the 3-Series making its way through the Nürburgring on a trailer.

By on July 11, 2011

Ford hasn’t built a Mercury in six months and 98 percent of its erstwhile dealers have signed termination agreements with the parent company, but the remaining 31 dealership owners are digging in their heels for a fight. Automotive News [sub] reports that these Mercury dealers recently spent huge amounts building or renovating their Lincoln/Mercury stores, and that Ford’s termination offers are embarrassingly tiny in comparison.

For example, the owner of Francis Scott Key L-M Inc. in Frederick, Md. claims to have spent $5.5m on a dealership expansion which was completed in 2007, but only received a termination offer of $181,026 from Ford. Liberty Lincoln-Mercury in Clifton, N.J spent $7.7m upgrading its facilities in 2004, only to receive a $733,575 termination offer from Ford. So far, AN counts four dealers who are suing Ford in federal court, and an undisclosed number have filed complaints with their state DMV. Ford, meanwhile, is trying to engage the holdouts in mediation, and though some have settled others are reporting bad experiences. Meanwhile, there’s another problem that underlines the the entire dispute: can a standalone Lincoln dealership even survive?

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By on July 11, 2011

  • “All of Volkswagen’s premium-enthusiast Euro-appeal has been stripped from the Jetta”
  • “The new model has hard plastic that wouldn’t look too out of place in a Chrysler Sebring”
  • “Gone are the things that made the Jetta special to those who cared”
  • “For the Jetta, it’s pay less and you get less. And in our opinion, that’s a step backwards”

There’s your verdict, straight from TTAC, C/D, LLN, and Edmunds respectively.

Jetta sales, first half 2011: 91,752, an increase of well over sixty percent over 2010

There’s another verdict, straight from the people who actually matter.

Does the first verdict refute the second — or support it?
Read More >

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