Category: News Blog

By on May 26, 2009

Alaska’s newest US Senator was one of the earliest champions of photo enforcement. Mark Begich, a Democrat, took over the senate seat held by Ted Stevens (R) in January after narrowly defeating the scandal-plagued incumbent. Twelve years ago, Begich’s photo enforcement plan lasted only for a year before being crushed by a public referendum and series of devastating court losses.

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By on May 26, 2009

Theodore writes:

Here’s one for you: what’s the best way to secure a parked manual transmission car? I leave mine with the parking brake on and the shifter in first. My cousin puts the brake on and the shifter in reverse. My brother-in-law puts the brake on and the shifter in neutral. So putting the brake on appears to be universal, but where should the shifter be? Is there any extra wear and tear from leaving the car in gear?

Sajeev answers:

Definitely park the vehicle, apply the parking brake and leave in gear. Engaging the clutch ensures the car won’t roll in the time between disengaging the parking brake and putting your foot on the brake pedal. Kinda makes sense when you think about it, no?

Leaving the car in gear won’t increase wear on the engine or clutch, unless you like to crank ‘er up without depressing the clutch pedal. Which assumes you hacked the system to allow the starter to crank without the clutch switch activated. If you went to all that trouble, perhaps you should find another hobby.

As far as your chosen gear, that’s irrelevant: all you care about getting the clutch connected to the engine. Since you mentioned it, I like second gear: it’ll slide in with a mere slap of a wrist from my billet short-shifter.

[Send your technical queries to mehta@ttac.com]

By on May 26, 2009

Volkswagen’s FE. Picture courtesy maps.google.com

Whoever has been on the inside of Volkswagen knows that they are devout skeptics when it comes to alternative energies. Sure, they do some token research into hydrogen and hybrids to give the blue VW logo a greener hue, but deep in their hydrocarbon pumping hearts, they are devoted pistonhardheads. The aggressive incremental improvement of internal combustion has been their true strategy. Under the “BlueMotion” moniker, they tweak existing technology to wring every last drop of gas (or diesel) out of it. So far, the conservative (and conserving) strategy has succeeded: The new BlueMotion Golf VI, fitted with a peppy 1.6L TDI oil-burning engine, gets 61.9 mpg, handily beating the 2010 EPA 51/48/50 mpg numbers of Toyota’s third gen Prius (YMMV, as you well know.) Suddenly, Wolfsburgologists are registering a change in VeeDub’s secretive Forschung und Entwicklungs Abteilung (R&D Dept., see picture above.)

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By on May 25, 2009

Automotive News [AN, sub] reports that ex-GM CEO Rick Wagoner missed out on a $39.2 million payday. We already knew about Red Ink Rick’s as-yet-unpaid $22.1 million pension fund. (The Presidential Task Force on Autos (PTFOA) won’t sign the company killer’s pension check for fear of an epic bailout backlash.) We now learn that the GM Board of Directors—an august body so deep in Wagoner’s pocket it nearly suffocated in lint—could have “awarded” Wagoner an additional $17.1 million in severance pay. Bailout regulations put paid to that bonanza. Wagoner also saw the value of his stock plummet from $93.62 a share to nearasdammit niente. Are we feeling sorry for Rick? During the GM lifer’s 17-year tenure as a senior executive, he banked some $9 million via stock options. I’ve yet to read about Rick’s total salary to date (he’s currently earning a buck a year) or the perks he will continue to enjoy into his dotage. As the Brits would say, I’m sure Rick’s not short a bob or two.

By on May 25, 2009

This one make more sense than the Mitsubishi and Saturn hook-up floated last week. Automotive News [sub] reports that Roger Penske thinks it’s a good idea to import Korean-built Renault-Samsung Motors vehicles to sell through the Saturn dealer network. (Apparently, Roger’s been en France kicking the idea around with Renault – Nissan CEO Carlos Ghosn.) Remember: I said more sense. Not a lot of sense. The details that would make this deal seem sensible are . . . uh . . . sketchy. “It’s not known which vehicles would be sold by Saturn or whether they would be current Samsung offerings or new ones based on Renault engineering. Also unclear: the corporate relationship between Penske and Renault-Nissan.” In the deal’s favor, the move might return Saturn to its roots as the first-time car buyer’s first port-of-call. Against, plenty. But it does back-up what we’ve been saying for some time: Renault – Nissan is sniffing around GM’s remains, looking for a tasty snack. Saturn or . . . the whole company? Watch this space.

By on May 25, 2009

Automotive News reports that bailout binging, eleventh-hour-back-room-rule-change bank (and former captive financier) GMAC has one set of rules for Chrysler dealers, another for GM’s. “Chrysler dealers must make monthly payments totaling 10 percent of the original outstanding balance on new vehicles that have been sitting on the dealership lot at least a year. [Plus a $25 “surcharge” per year-or-older car.] By contrast, GM dealers make monthly payments totaling 10 percent of the original balance on new vehicles that have sat on dealership lots at least 18 months. [Plus a $15 “surcharge” per year-or-older car.] Hey! Not fair! “And GMAC will finance just 80 percent of the purchase price when Chrysler dealers buy used vehicles at auction, compared with 100 percent for GM dealers.” Double not fair! GMAC’s reasoning (or lack thereof) after the jump.

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By on May 25, 2009

Mr. Niedermeyer has crafted another “Curbside Classic” for your literary delectation and pistonhead perusal. I’ll publish the latest in his series tomorrow. Meanwhile, we’ve started our contest to “name that curbside classic.” This week’s booty: Mr. Herbert H. Blaha’s most estimable work Taschenwörterbuch der Kraftfahrzeugtechnik. That’s a German – English, English – German pocket dictionary of automotive engineering to you and me. [Also available from www.brandstetter-verlag.de.] So, first one to identify this week’s curbside classic gets the tome with which no transplanted Volkswagen technician (or owner, come to think of it) should be without.

By on May 25, 2009

10 years, 6 months, and 1 lifetime ago, I bought my first car at auction. It was a base 1986 Honda Civic hatchback. One owner. 166k miles and power nothing. Not even close. It did have A/C and a radio (thank God!). But it was little more than basic A to B, which was fine because I was in school at the time. I bought it for $525 at a public auction, which came to $630 including taxes and auction fees. It was a beautiful buy at a point in my life when I literally needed to save every nickel in my pocket. So what did I end up doing?

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By on May 25, 2009

By on May 25, 2009

Clunker culling is spreading faster than the swine flu. Throughout the world, governments are putting bounties on aging autos. Of course, all for the noble cause of greening the planet. China has come out with a surprising new twist. On May 19, the Chinese government had announced the mother of all clunker culling initiatives. They would not only give cash to consumers who replace their old cars. No, they also offered money for the replacement of washing machines, TV sets, and additional abominable atmosphere attacking appliances. Today, China’s government issued a new edict: Buyers of small cars may not apply. Cash for clunkers is only handed out if you trade in your ancient ride for a new car with a displacement of 1.6 liters or larger, Gasgoo reports. Anything, as long as it’s bigger than 1.6 liters.

Shen me? (Excuse me?)

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By on May 25, 2009

Playing poker for money is illegal in Germany. Which doesn’t keep the German government from conducting a high stakes poker game with a group of high rolling players. Around the table: Fiat, Magna, Ripplewood, Chancellor Merkel, Vice Chancellor Steinmeier, Minister Guttenberg. Kibitzing and making comments: The premiers of the Opel states, the unions, the Opel dealers, and just about everybody else. On the table, barely alive: Opel. The Financial Times calls it—with British understatement—“considerable back-room powerplay by politicians.”
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By on May 24, 2009

Fiat, RHJ International and Magna have all submitted bids for GM’s European unit, Opel. In an interview published today [reported by The New York Times], German economy minister Karl-Theodor zu Guttenberg reserved the right to reject all three suitors, sending Opel into bachelor’s bankruptcy. “We must first have a high degree of certainty that the significant tax money we will have to provide is not lost,” KTzG pronounced. Roger that. All three offers depend on German financial backing; without which NONE of them will go forward. After those glad tidings hit the net, KTzG went into damage control mode. Speaking to journalists in Berlin, Mr. Guttenberg’s spokesman “clarified” his position: “we want to avoid bankruptcy, but bankruptcy has to be an option. Apparently, an “orderly insolvency” would “not be the end of the company.” Who’s the oxymoron now?

By on May 24, 2009

[NB: ANPR = Automatic Number Plate Recognition]

By on May 24, 2009

1. Floorplan costs The more dealers you have, the slower the inventory turn. The slower the turn, the longer it takes to repay the debt. The longer it takes to repay the debt, the more money that’s required. By cutting dealers, the manufacturers cut GMAC’s capital requirements, which run into the billions.

2. Inventory Excess inventory ties up capital and increases the burden of the floor plan, due to the longer sales cycle. (Chrysler and GM have far higher days of inventory than Toyota, Honda, BMW, et al. All that metal sitting around wastes a lot of money delaying the conversion of assets to cash). If the automakers have fewer dealers to serve they should be able to produce fewer vehicles.

3. Resale value More dealers means more competition within the brand which means lower transaction prices.

4. Profit at the dealer level One would hope that you end up with better dealers if they can make more money (although that’s debatable).

By on May 23, 2009

God I love Google Translate. Where else can you generate Zen koans like the one above, allegedly attributable to Honda CEO Takeo Fukui? OK, it’s not actually a koan. But I sure would like to know what this “big mistake” is gonna be. Meanwhile, Bloomberg reports Fukui’s interview with Japan’s Yomiuri. Apparently, the Japanese carmaker’s going to hybridize everything they build, including our ’bro Asimo. I made that bit up, obviously. In truth, Honda’s  “considering” introducing gas-electric minivans, sports cars and luxury sedans. If they’re as good as the new Insight, we have two words of advice: don’t bother. Oh, and I think Bloomberg translated the aforementioned techno-statement a little more accurately: “Fukui said it’s a ‘huge mistake’ for merging carmakers to expect cost savings on research and development.” Or anything else for that matter. Not that Fiatsler or their patrons (that’s you!) are listening. Hang on . . . now that I think about it, Google’s translation is actually pretty accurate. Huh.

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