Category: News Blog

By on October 6, 2010


I should have known from the breathless senior in long shorts and fancy jewelry: “AC Propulsion is over there. They won the X-Prize!” I should have known from the Long Curly Hair Middle-Aged Dad with Toddler and Pregnant Hippie Wife. I should have known from the fact that this first day of the national “Drive Electric Tour Sponsored by Nissan Leaf” was in Santa Monica. But I didn’t, and so
color moi tres surpris when the little Leaf driving demo was actually the biggest part of the 2010 Alt Car Expo. Petrolheads beware.

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By on October 6, 2010

When a country gets desperate, it closes its borders to imports. It’s a sign of surrender: We can’t compete anymore, so let’s close the doors. Closed borders rarely create jobs. In the contrary, they drive prices up, and everybody pays. Import restrictions are the most insidious tax a country can levy on its citizens. And they readily pay for it. Trade wars are an easy sell. Especially to people who cannot balance their checkbook. The price will be paid later. Read More >

By on October 6, 2010

The recommendations are simple: Scrap the vertical label, lose the letter grade and emphasize the mpg and cost of owning the vehicle. If the EPA takes these steps, it may be successful in increasing the number of fuel-efficient vehicles on the road and communicating clearly with consumers.

Alan Siegel of brand consultants Siegel+Gale summarizes his firm’s independent research on proposed EPA fuel economy label designs in Automotive News [sub]. Siegel interviewed 456 prospective new car buyers, and found that 66 percent preferred the “horizontal” proposal, while 47 percent found the “vertical” style (which includes the letter grade) “confusing.” No word on what percentage found the letter grades to be “asinine.”

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By on October 6, 2010

Here is another myth that won’t die, as hard as we might be trying to debunk it: “Japan is a closed market for cars. They do everything to keep foreign cars out. Those Nips are unfair, and it’s time to do something about it.”

It’s baloney. Paul Niedermeyer debunked the propaganda, and said: “Want to import cars to Japan? It’s one of the easiest countries to do so.“ I did another  story and showed, for those with reading comprehension problems, a picture of Japanese im- and exports. But the story won’t die. Ok, let’s try again to put it to rest. Read More >

By on October 6, 2010

OK, so what’s literally wrong with the picture is that TTAC needs a real graphics team. The larger, figurative problem: Ford is replacing its long-soldiering Lincoln Town Car, the granite-standard of livery transportation, with its unloved (5,701 sales year-to-date) MKT crossover. Say what you want about the old Town Car, at least it had a certain quietly anonymous gravitas. The MKT? Let’s just say that a stretched version will serve largely to make the adjective “cetacean” even more applicable to the baleen-snouted crossover. According to the Freep, Ford will offer

a standard livery vehicle with stretched second-row seating and a modified heavy-duty chassis version designed for limousine modification.

The livery version is available in both front-wheel and all-wheel drive. The heavy-duty limousine chassis will feature standard all-wheel drive for stretch limousine construction up to an additional 120 inches – or 10 feet – of wheelbase.

Out with the Panther, in with the Whale?

By on October 6, 2010

With sales of its aging city car circling the toilet, Roger Penske’s Smart USA has reached a deal with Nissan to sell a Smart-branded version of a Nissan-developed four-door B-segment car, likely the Versa. Though Penske’s organization apparently pushed for and announced the deal, and the model will be exclusive to the US, the Detroit News calls the move “part of the growing cooperation between the Renault-Nissan Alliance and Daimler AG.” Penske says

We are proud to be a partner with both Daimler and Nissan, two companies focused on bringing high-quality, fuel-efficient products to the U.S. market
With the five-seat, American-size Smart coming from Nissan, the forthcoming Smart ForFour (which Daimler is developing in partnership with Renault) seems unlikely to make a stateside appearance. This despite considerable cost reductions compared to previous Smart models by co-developing with Renault, creating a modular platform with common engines, and building the ForFour in Eastern Europe. After all, you can can work all you want to make a make a European car cheaper, but rebadging a Mexico-built Japanese model will always be cheaper. Besides, Americans won’t know the difference… right?
By on October 6, 2010


It’s that time again. The time that I report on the market that no-one cares about. The UK. The SMMT has released the car registration figures today and as predicted, they fell, but not as much as other markets. The UK saw new car sales fall by only 8.9 percent, compared to, say, Italy. Overall, the UK market still remains 7.8 percent higher than last year (to date). The Ford Fiesta remains the best selling model in the UK, which will do our balance of trade with Spain and Germany no favors. Diesel cars and alternatively fuelled cars all posted growth in September. What was also telling about this “growth” was this little nugget of information: Private demand fell, while fleet demand increased. That’s right, while private customers are fleeing, car makers are trying to sustain volume by following the fleets. Shall we take a look the breakdown? Read More >

By on October 6, 2010

OK, I know there are a lot of American car lovers all over Europe, and finding a Mustang and Corvette is not that big a deal. But seeing American cars out of context never fails to make an impression on me, as it did when I was a kid in Austria: they just look out of place here. This early Corvette looked like it was a 12/10 version, fighting to make progress through a sea of little hatchbacks. I could see the driver sawing at the big wheel, and the burble of the V8 would makes this a ’55. A handsome beast among the natives, and a refreshing change. Unlike the other one:

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By on October 6, 2010

Baytown, Texas has been caught using an illegally short yellow time at the latest city intersection to be monitored by a red light camera. Tickets have been issued since January 30 at the intersection of Cedar Bayou Lynchburg Road at Garth Road where the yellow time is set to 4.0 seconds, the bare minimum acceptable amount for an intersection posted at 40 MPH according to Texas Department of Transportation guidelines. The Baytown Red Light Camera Coalition (BRLCC) uncovered the fact that the intersection approach is in fact posted with a 45 MPH sign, meaning the bare minimum legal yellow for the location is 4.3 seconds, not 4.0 seconds.

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By on October 6, 2010

It was actually a “Dear John” letter! No surprise, since that’s my proper name, and that’s how I registered my SRT-4 six and a half long years ago.

Dear John,

My name is (blah blah), manager of (blah blah) Chrysler Jeep Dodge and I am contacting you today to inform you of a special offer available designed just for you. Over the last couple of weeks we have had several customers inquire about purchasing a reliable pre-owned Dodge Neon…

It is not an exaggeration to say that I laughed for a full thirty seconds.

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By on October 5, 2010

While some have questioned why TARP was used to support the automotive industry, both the Bush  and Obama Administrations determined that Treasury’s investments in the auto companies were
consistent with the purpose and specific requirements of EESA.  Among other things, Treasury
determined that the auto companies were and are interrelated with entities extending credit to
consumers and dealers because of their financing subsidiaries and other operations, and that a
disruption in the industry or an uncontrolled liquidation would have had serious effects on financial
market stability, employment and the economy as a whole.

Translation: credit dependence killed the car companies. And from the 0% Red Toe Tag Sales to GM Daewoo’s $2b currency gambling loss, the glove fits. It’s a lesson that isn’t brought up often enough, and it’s one of the only passages of note in the Auto Industry Financing Program section of Treasury’s two-year TARP retrospective [PDF here]. Otherwise, the document is swallowed up in accounting for the billions spent on banks, despite the fact that

We now have recovered most of the investments we made in the banks.  Taxpayers will likely earn a profit on the investments the government made in banks and AIG, with TARP losses limited to
investments in the automobile industry and housing programs.

So, why not explain why projected auto rescue losses were reduced to $17b with more than just a footnote? [#2 on Figure 2-B shown above]

By on October 5, 2010

When Renault released their second generation Megane, people’s reaction pretty revolved around three words. “Whisky”, “Tango” and “Foxtrot”, if you know what I mean. I remember when I first saw it my first thoughts were “My goodness! It looks like someone’s made a massive dent in the back with a cricket bat.” But what did I know? It was voted European Car of the Year in 2003, was the first small family car to achieve a 5 star Euro NCAP rating, and went on to become a sales success. Now let’s look at Renault’s partner, Nissan. When the Juke came out, the reaction was pretty much the same to the Renault Megane. “What in the name of all that is holy is that?!” And now. the Renault-Nissan alliance has done it again. Read More >

By on October 5, 2010


A friend of mine once tried to break the world record for the longest time standing on one foot. The record (at the time) was held by Arulanantham Suresh Joachim of Sri Lanka for standing on one foot for 76 hours and 40 minutes. My friend lasted 2 minutes, then collapsed in heap and wondered if he’d maybe broken a bone in his leg. Silly boy. If he wanted to get into the Guinness Book of World Records, all he had to do was buy a Volkswagen Passat. Read More >

By on October 5, 2010

The day after Toyota announced that it still hasn’t found an electronic cause for unintended acceleration in its vehicles and that UA complaints are down 80%, Consumer Affairs reports that Allstate Insurance filed a $3m suit against the Japanese automaker, claiming it “essentially hid the problem.” The suit, filed in the Southern Californian district court that is hearing all UA-related suits against Toyota alleges

This has resulted in numerous claims of instances of property damage and injuries, including in some instances fatalities

Furthermore, the suit claims that it had to compensate UA-related claims because Toyota hadn’t fitted a brake-override to its vehicles, a feature that is not yet required by law. Toyota is adding brake-override to all of its 2011 models, but claims that Allstate’s charges “have no basis.”

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By on October 5, 2010

There was a time when nearly every customer asked, “Does it come with a clean Carfax history?” It came to a point where I would just routinely leave them on the driver’s seat so that the questioner could peruse what they thought was a complete ownership history. Then certain things happened in the marketplace.

Dealers began targeting vehicles that ‘did’ have frame damage, but were not mentioned on Carfax. Not every insurance company or state police agency agency had (or has) a relationship with Carfax… and some of the nastiest of damage came with the most expensive of vehicles. Carfax got blamed, threatened, sued, and dragged through the sensationalistic dreck we now find on network news. The price of Carfax subscriptions went up while this was happening, and as a result dealers and individuals began to seek alternatives. Autocheck became a de facto standard at the auto auctions, and now it is the leading competitor to Carfax. But is it better?

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