Category: News Blog

By on March 11, 2011

Ryan writes (again):

Ryan from Chicago again. My fiancé is currently driving a 2006 Civic Sedan that she loves. It was bought by her parents in cash 5 years ago. It has 55K hard miles on it. As a car that gets driven around the city a lot, it is starting to show some wear and tear, but obviously has a lot of life left.

Her father is someone who lies to replace cars every 3-5 years, so in his mind the Civic is due for an upgrade. I don’t see the need for the change, but this will be like a free new car for a wedding present.

Now the question: Is there a better car out there for my fiancé than a new Civic. Here is what she loves about the car; it is small, it has 4 doors, it has cloth seats, it has a small steering wheel. That’s it. Knowing her father, he will only buy new and the budget is between $15K and $22.5K

With the wedding a few months away, any and all input is much appreciated.

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By on March 11, 2011

A year ago we reported on a study by the Center for Automotive Embedded Systems Security, which showed that the proliferation of eletronics systems in modern auomobiles left them vulnerable to hacks through the OBD-II port, leading to such scary lessons as

Much to our surprise, significant attacks do not require a complete understanding or reverse-engineering of even a single component of the car.

But, the results of that study were dependent on gaining physical access to a car’s OBD port. This year, the UC San Diego and University of Washington academics behind CAESS took their research a step further, exploring how hackers could compromise cars without ever gaining physical access to them. Researchers bought a 2009-model-year vehicle of undetermined make, and attempted to hack into it. One of their findings: cellular-enabled assistance programs like GM’s OnStar and Toyota’s SafetyConnect unsurprisingly leave vehicles especially vulnerable.

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By on March 11, 2011

Having struggled to launch and expand its Smart brand, Daimler might be forgiven for being a bit gunshy about investing in brands other than its globally-recognized Mercedes-Benz marque. And it seems the German outfit is currently agonizing over not just one but two big brand choices on the opposite ends of the automotive spectrum. First, Auto Motor und Sport reports that Daimler’s bosses are still undecided about the fate of the über-luxury Maybach brand, noting

“We have to do this year, because the model cycle is not endless,”  Daimler CEO Dieter Zetsche tells Auto Motor und Sport. Here, the decision is open, even though the Maybach models are profitable. “I hope for a positive decision as long as we can create the proper conditions. We have invested heavily in the brand, but that is past. On the other hand, we now enjoy a very attractive profit margin on a per-car basis.”

If there’s one major challenge facing Maybach, Zetsche admits, it’s European emissions standards. Which is where Daimler’s other branding problem comes in…

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By on March 11, 2011

How many times had I written that Volkswagen’s sicklish SEAT will come to China? I had to peruse Google to find out. For more than two years, SEAT’s impending arrival in the Middle Kingdom had been floated, and then, like clockwork, the denials followed. So with a good deal of “yeah sure, it has been tried before” do we read the story in Autocar that “the Spanish marque will exhibit for the first time at next month’s Shanghai Motor Show and expects to be selling cars in China from early in 2012.” Read More >

By on March 11, 2011

The Missouri Department of Transportation (MoDOT) announced Wednesday that it was expanding a system for lowering speed limits on the freeway, despite its own surveys showing the public has a “high level of dissatisfaction with the system.” A study conducted on behalf of MoDOT by the Missouri University of Science and Technology included a few positive statistics about the performance of Variable Speed Limits, but the overall conclusion was that the program failed to provide the promised benefits.

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By on March 11, 2011

Of all the dramatic footage coming from the devastation of the Japanese Tsunami, perhaps one of the most arresting images is of a flood of cars washing inland. Seeing a parking lot worth of cars reduced to so much flotsam and jetsam is a stern reminder of nature’s power, and a powerful symbol of what Japan is going through right now…
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By on March 11, 2011

An 8.9 earthquake, the world’s sixth largest, followed by a massive tsunami, rocked the north of Japan. The center is close to Sendai, where Toyota recently opened a new plant. Sendai took the brunt of the quake. Telephone service all over Japan is severely degraded. Via a very spotty cellphone line, I reached Toyota spokesman Paul Nolasco, who was standing outside his office building, like most people in Tokyo. Read More >

By on March 10, 2011

The Federal Trade Commission has announced that it will be holding a series of round table discussions aimed at investigating misleading dealer practices in the areas of sales, financing and leasing. According to the Commission’s release, the round tables will

gather information on consumers’ experiences when buying or leasing motor vehicles. The roundtables will explore consumer protection issues related to the sale, financing, and leasing of the consumer vehicles consumers most often use – cars, SUVs, and light trucks.

For many consumers, buying or leasing a car is their most expensive financial transaction aside from owning a home. With prices averaging more than $28,000 for a new vehicle and $14,000 for a used vehicle from a dealer, most consumers seek to lease or finance the purchase of a new or used car. Financing obtained at a dealership may provide benefits for many consumers, such as convenience, special manufacturer-sponsored programs, access to a variety of banks and financial entities, or access to credit otherwise unavailable to a buyer. Dealer-arranged financing, however, can be a complicated, opaque process and could potentially involve unfair or deceptive practices.

The National Auto Dealer’s Association says [via Automotive News [sub]] it will attend the round tables and represent dealers’ efforts to “increase financial literacy” and “promote regulatory compliance.” Auto dealer finance was one of the only finance sectors exempted from the Consumer Financial Protection Act, despite protests from the Pentagon.

By on March 10, 2011

It’s been a good day for drama, what with GM losing its CFO, Saab’s principals turning on each other, Carlos Ghosn showing the first signs of losing his grip on his global empire, and Rs and Ds battling over GHGs. But what today was missing in the drama department was a spat between two legitimate stars, a throwdown featuring the hot young celebs of the automotive world. Well, thanks to ASCA.it [via Carscoop], we have it. Speaking to the Italian press, Ford CEO and industry darling Alan Mulally took on Fiat-Chrysler’s up-and-coming global starlet, the Fiat 500, bashing its chances of success in the US.

Mulally also talks of competing with Chrysler and about the market prospects of the Fiat 500 in the United States, provides: ”I do not see big market space for one car in the U.S. more ‘smaller Fiesta.” He added: ”Who has tried has failed.”

Presumably Mulally was comparing the 500 to Daimler’s Smart brand effort, in which an established automaker attempted to bring a new brand and a premium A-segment city car to the US and failed badly. And Mulally isn’t just idly speculating either: if he thought a sub-sub-compact car would sell profitably in America he’d bring Ford’s Ka, which is built on the same platform as the Cinquecento, here and make a fight of it (hell, it’s already appeared in a Bond movie). And with Chrysler’s plan to sell 55k Fiat 500s in the US this year already “a little bit behind,” it seems Mulally’s skepticism may be well-placed.

By on March 10, 2011

Within days of breaking, the Renault Spy Scandal has been in “full reverse,” and now it seems the story is becoming even more embarrassing than we had even imagined. The last time we looked at the case, Bertel forwarded two possible theories for the “farce”: either Nissan-Renault CEO Carlos Ghosn wanted a distraction from a soft Nissan Leaf EV launch, or someone inside the company wanted to sabotage Ghosn. Now a new theory takes the farce to nearly unimaginable levels…

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By on March 10, 2011

House Republicans took the first steps towards banning the EPA’s regulation of greenhouse gases, as the Energy and Power Subcommittee of the House Energy and Commerce Committee approved HR 910, the Energy Tax Prevention Act of 2011. In their statements today, Republican committee leaders cited rising gas prices and negative impacts on American businesses as the main reasons for attempting to strip the EPA of its ability to regulate emissions of

Water vapor, Carbon dioxide, Methane, Nitrous oxide, Sulfur hexafluoride, Hydrofluorocarbons, Perfluorocarbon and any other substance subject to, or proposed to be subject to, regulation, action, or consideration under this Act to address climate change.

Intriguingly, subcomittee Chairman Ed Whitfield’s statement [PDF] names a number of industry groups who support HR910, including the National Association of Manufacturers, U.S. Chamber of Commerce, American Farm Bureau Federation, National Mining Association, National Cattlemen’s Beef Association, National Petrochemical and Refiners Association, and the National Association of Realtors… but no auto industry group was named as a supporter of the bill (current regulation of GHGs only cover power stations and large-scale emitters). HR910 has been fast-tracked to the full Energy and Commerce Committee, which will begin hearings on Monday. According to Bloomberg, Senate Democrats are vowing to block the bill, arguing that Republicans attempts to link the bill to gas prices are misleading and that if passed, it would increase harmful pollution.

By on March 10, 2011

Reuters reports that Saab/Spyker partner Vladimir Antonov has questioned whether Saab will hit its ambitious 80k unit global sales goal this year, saying

This means that the company could face capital problems

Thelocal.se provides a little more detail quoting Antonov as saying

I’m not involved in how the company is run so I don’t have access to the numbers. But according to earlier versions of the business plan, they have to sell 80,000 cars this year to stay with the plan. From my point of view, I think that’s a bit too optimistic.

If the goal isn’t reached it would be nice for Saab to have €50-70 million ($69-97 million) as a little something extra to lean on. We’re ready to provide that money if we’re allowed to do so by the [European Investment Bank].

Antonov went on to say that bringing in outside investors would be difficult and that if the EIB loan fell through, something he does not foresee, Saab could be bankrupt “in days.” Needless to say, Saab’s Chief Optimism Officer Victor Muller didn’t take kindly to Antonov’s remarks and is firing back in the press.

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By on March 10, 2011

One of the eternal battles of the car world has broken out in New Hampshire, where angry seniors have introduced a bill [HB 549] to remove that state’s requirement of annual driving tests for motorists over the age of 75. According to the New Hampshire Union Leader,

In 2008, 1,088 state residents 75 or older failed the road test. In 2009, the number rose to 1,405, and in 2010, there were 615 failures through October… New Hampshire and Illinois are the only two states that require license-renewal applicants 75 and older to take a vision test and a road test. Nine states require some form of vision test. Maine requires one at first renewal after age 40.

The AARP and angry seniors say the elderly do not actually cause more crashes than young people, and in  recent years, the New Hampshire accident statistics bear them out, as 16-25 year-olds were involved in around 10 percent of crashes there in 2008 and 2009, while the 66-75, 76-85 and 86+ cohorts each accounted for around 2-4%. But then, those statistics are based on years in which over a thousand seniors were denied the right to drive… without the law, it’s hard not to argue that those numbers could be higher. But seniors call testing “age discrimination” and say the tests often fail good drivers who become nervous and allow poor drivers to pass.

Given that your state likely doesn’t have a mandatory senior driving test law, would you support one? Is mandatory vision testing enough? What about mandatory video games? Or, should government stay away from age-based conditions on drivers licenses?

By on March 10, 2011

By slyly slipping an image of a classic Chrysler 300 into this ad, Lancia is subtly admitting the truth about its new Thema. And in light of this half-admission of the Lancia’s less-than-entirely-sophisticated Brampton, Ontario roots, perhaps the better Baudelaire line would have been the great stoner’s admonition to

beware of common folk, of common sense, of sentiment, of inspiration, and of the obvious.

If Baudelaire were alive today, does anyone doubt he would have added “marketing” to that list?

By on March 10, 2011

Ryan writes:

Sajeev and Steve,

I’ve got a 2006 Jeep Wrangler Rubicon that I’ve had since new as my only car.  It was my first new car and I got it right out of college.  It is configured exactly as I planned and I still love it today just as much as when I bought it, and best of all, it’s paid off.  I live in Denver and take the Jeep up on mountain trails and explore the Utah desert from time to time.  Still, with 80,000 miles on the clock, the 4×4 is aging a bit.  My plan is to retire the Jeep from its daily burdens and add a more sensible daily driver.

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