Category: News Blog

By on May 16, 2011

Ford’s arduous Lincoln turnaround is having another one of those awkward moments, as Ford and its dealers seem to once again be at odds about how to go about fixing Lincoln. And though it’s tough to tell what exactly is going on in Ford’s fandango with Lincoln dealers, it’s easy to see that it ain’t good. For starters, last week, Automotive News [sub] ran a blog item that noted

In just a few weeks, a group of Lincoln dealers will converge on Detroit for an invitation-only brand meeting with Ford Motor Co.

Mark Fields, Ford’s president of the Americas, promises that the meeting in early June will spell out some specifics about Ford’s plan to reignite its luxury brand.

But some dealers have put their invitations in the round file.

One says he won’t “waste” his money on airfare, adding that when Ford has “actual future product to show us, then I’ll go meet with them.”

One Lincoln dealer with a stand-alone store did not get an invitation, but he doesn’t care.

So, clearly things don’t sound happy in Lincoln Land. And what does Ford have to say to the non-attending and uninvited dealers? Ford’s Alan Mulally personally delivered a response the next day at Ford’s annual shareholder’s meeting…

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By on May 16, 2011

Some folks say that stupidity is doing the same thing over and over again and expecting a different result.

Well, those folks have never been to an auto auction. Today we had over 95 dealers doing the same thing over and over again. Looking at a vehicle. Bidding it up to the nether-regions. Hoping that profit will come back via retail or buy here pay-here. Carmax has cutthroat middle-fingered competition at their dealer auctions and the prices reflect the screwing mentality that will likely be passed onto the bad credit consumer.

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By on May 16, 2011

One of the most consistent and valid criticisms of GM’s product development, even in the post-Lutz era, is the class-leading weight that so many new GM products carry around with them. To a number of industry observers, the lingering weight problem that so many of GM’s cars struggle with is a sign of corners cut in the design process. GM’s cars may look, feel and drive better than they did five, let alone ten, years ago, but clearly the battle for truly “world class” products isn’t over.

And now we’re getting some of the first indications that GM is taking the weight issue seriously, as GreenCarCongress reports that GM’s engineers have pulled 13 lbs out of its 3.6 liter direct-injected V6 simply by redesigning its head. Given that the 3.6 is already one of GM’s better engines, and is used in a huge number of its vehicles, that’s a solid first step as The General takes on the battle of the bulge.

By on May 16, 2011

As Steve Rattner described in his book “Overhaul,” the Presidential Auto Task Force very nearly decided not to rescue Chrysler, with the decision coming down to a single vote. Now, it seems, that with Chrysler blaming the “shyster” interest rates on its government loans for its lack of profitability, Chrysler’s viability now depends on rounding up a “lender of second to last resort.” And, according to the latest reports, that rescue-of-a-rescue effort is still very much hanging in the balance as well. If CEO Sergio Marchionne thought the government’s loan terms were “shyster”-ish, he was clearly in need of some context from Wall Street… and he doesn’t seem to be liking it.
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By on May 16, 2011

Lewis writes:

So I have been debating my next car purchase and am wondering your thoughts.
Does it make more sense to purchase an older low mileage used vehicle or a newer vehicle with high miles. An example would be let’s say a 1997 Jeep Wrangler with under 30K miles or a 2007 Jeep Wrangler with 95K miles.

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By on May 16, 2011

Rick Kranz, product editor at Automotive News, had an epiphany: “To understand Victor Muller’s obsession with China, you need to understand where that market is headed,” Kranz wrote. Ok, enlighten us, sensei. Where is it headed? Read More >

By on May 16, 2011

When Lotus showed five new cars at the Paris Auto Show last summer, the British Sports Car brand raised a number of eyebrows amongst the motoring press. Not only was Lotus abandoning its lovable but hugely unprofitable enthusiast/trackday niche, but it was also reaching for Ferrari and Porsche-style brand recognition while offering an ambitious but underwhelming (on paper anyway) vision of its future product lineup. Five new vehicles (three mid-engine, two front-engine, four two-door coupes, one four-door sports sedan) is a lot of development work, and initial reports that Lotus would use Toyota power including hybrid drivetrains didn’t create much for enthusiasts to get worked up over. Lotus has since backed away from using Toyota power, but developing engines for five new vehicles creates a whole new set of challenges. And, as it turns out, Lotus has wuietly backed away from the most ambitious elements of its plan, and the firm now plans to launch only two cars at first. Has Lotus turned the corner from hype machine to credible competitor?

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By on May 16, 2011

The Wisconsin Court of Appeals on Wednesday gave its first ruling on how dashcam evidence would be treated at the appellate level. A three-judge panel decided that the proper legal standard when evaluating a video is to overturn a trial judge’s decision only it is “clearly erroneous.”

The context was provided by the November 4, 2009 arrest of Jeffrey D. Walli in Sheboygan. The court was asked to determine whether Sheboygan Police Officer Brandon Munnik had a valid reason for pulling Walli over in the first place. Munnik claimed that around 11:22pm Walli’s car nearly sideswiped him, so he flipped on his emergency lights, which triggered his dashboard-mounted video camera, and gave chase. Munnik testified that the resulting video showed Walli’s car over the center line and was a legitimate traffic violation. Walli’s attorney disagreed with that take.

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By on May 16, 2011

Logic makes you think that used cars sales would skyrocket at the moment in Japan. The auto industry barely has started producing and will not be back to normal before the end of the year. Hundreds of thousands of cars have been destroyed. In Japan’s Miyagi Prefecture alone, 146,000 cars are estimated to have been severely damaged or destroyed, 10 percent of the 1,540,000 cars registered in the Prefecture. Used cars should be flying off the lots. But the opposite is true. Read More >

By on May 16, 2011

Victor Muller is getting desperate. Hard up for cash, he is willing to sell 24 percent of Saab to a car dealer in China. It’s not any car dealer, but Pangda, one of the larger chains in China. According to a Spyker press release, Pangda has “over 1100 dealerships nationwide”, according to Pag Da’s own profile (see below) is has about half of that. Be it as it may, it is a dealer group, not a larger automaker. Not even a smaller one. Read More >

By on May 15, 2011

During the recent annual shareholder meeting in Munich, BMW’s prez Norbert Reithofer confirmed the Bavarians are seriously considering starting production in Brazil. “We are studying new places for production, such as an assembly line in Brazil and in another BRICT country”, he said. This comes on the back of another of BMW’s top honcho’s declaration. Back in March, BMW’s head of production Frank-Peter Arndt commented: “We believe Brazil has a great future ahead. The country’s development over the last ten years has been impressive”. Read More >

By on May 15, 2011

As you’ve read here many times, the drums against imports have been beating in Brasília for a long time. Now, the government is acting. It has opened up its little tragic bag of dirty tricks and is pulling the first, as it were, rabbit out. It also promises to dip into that bag again if this first rodent fails to bite. Moneyed (and not so moneyed Brazilian import buyers of Chinese cars) Brazilian consumers should run to the dealerships to get ’em while they can. They should also put some money aside as the measure will also affect parts makers and consequently prices. Read More >

By on May 15, 2011

“If you have no cars, you will lose market share,” said double-CEO Carlos Ghosn at last week’s annual results conference of Nissan. He said openly what other carmakers on the other side of the Pacific only dare to whisper into the ears of sympathetic reporters, or via analysts at banks and brokerages: The March 11 tsunami will cost Japanese makers big chunks of market share. The questions is: For how long? Read More >

By on May 14, 2011

Editor’s note: Car News China has some pictures of the Dongfeng EQ250 in police livery, accompanied by the nearly-unbelievable tale of the HMMWV’s Sinification, which we have excerpted here. Do surf over and check out one of the better Chinese car blogs out there.

AM General tried to sell the HMMWV to the People’s Liberation Army (PLA) in the late 1980′s.

The PLA however had no interest in the vehicle by that time, they thought it too big and heavy. AM General left one HMMWV in China, hoping the Chinese would change their mind. They did after the first Gulf War in 1991 when the HMMWV was on every TV screen in the world, seen as a winning vehicle that could cross every desert.

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By on May 14, 2011

It started as a flippant Twitter comment, in which GM Global Marketing Officer Joel Ewanick agreed to champion a return for the “El Camino” if 100,000 potential buyers raised their hands for it. Smelling an opportunity for some publicity, Jalopnik quickly picked up on the “challenge” and urged readers to leave a comment in support of the trucklet. At first Ewanick tried to hedge, saying he needed 100k deposits, rather than blog comments, to approve an El Camino for the US market. But now the former Hyundai marketer has taken Jalopnik’s challenge to Chevy’s Facebook page, giving a surprising amount of credibility for a “challenge” that began with a throwaway tweet. What makes Chevy’s endorsement of the “El Camino Challenge” even more surprising: the total lack of apparent enthusiasm.

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