The left-leaning US Public Interest Research Group (US PIRG) has issued a report entitled “Private Roads, Public Costs” that questions the benefits of using private tolls to construct or maintain roads. The report examined all fifteen completed road privatization projects in the US along with 79 known proposals nationwide. “Though these privatization deals seem to offer state officials a ‘quick fix,’ they often pose long-term threats to the public interest,” the report found. “The economics of these deals are such that the upfront concession payments are unlikely to match the long-term value of the higher tolls that will be paid by future generations and not collected for public uses.”
OK, so, it’s been one of those days. The site went a bit wobbly this morning, then crashed like a smart into a brick wall. Only many, many times. The bad news: we’re still not 100 percent on the technical side. The New Content Notification System—which spits out 11k “heads-up” emails when we have a new editorial or review—has been decommissioned until further notice. (I suggest RSS as a stop gap, and I’ll make sure I Twit regularly until normal service is restored.) And yes, there may be more service interruptions in the days ahead. I appreciate your patience and understanding during this time. The good news . . .
As part of GM CEO Fritz Henderson’s “Deeper, Faster, Oh, Baby” plan to implement GM’s previous plan—only more quickly and, uh, dramatically—the General wants to slice 1700 franchised dealers from their roster. Automotive News [AN, sub] reports that a combination of a bad economy and the American automaker’s piss poor management [reading between the lines, paraphrasing, stating the obvious] has shuttered 200 GM dealers so far this year. Only 1500 more to go; you know, in Fritz’s ideal world. Which raises the question: how are they going to do that? “GM officials have told dealers that they would identify underperforming locations and could move to terminate franchise agreements by June 1, a dealer who had received such a notice said on Wednesday.” As AN correctly points out, you can’t just pull the plug on a franchised car dealer without providing them with financial compensation, or stand ready to fight hundreds of lawsuits in all 50 states.
This year is going to be a devastatingly bad one for car valuations. If you’re a keeper, this is great news. New and near-new cars are going to continue with their proverbial freefall. You will more than likely be able to get a good vehicle with 80 percent of its useful life for 40 percent of the price (two to four year old vehicle). The frugalists amongst the keeper crowd will likely do even better than that. A well-engineered seven- to nine-year-old vehicle may truly be the best sweet spot in the market right now. With some diligence, you can find a conservatively driven car with 50 percent of its life (90k to 120k miles) for a mere 20 percent of its new car price. But what will be the absolute best deals? Read on . . .
BMW has begun the business of selling its X5 M (not MX5) and X6 M (not MX6) to paying customers. Here’s the heritage-scented pitch:
The modern, sustainable legacy of BMW M GmbH began in 1985 when engineers placed the snarling, race-bred inline-6 engine from the M1 supercar into the production BMW 5 Series sedan, reworked the suspension and brakes, and created the first M5. Through this industry-first combination of attributes, the M5 redefined the capabilities of a sedan with levels of power, precision, balance, and linear control never before imaginable. Since then, finding new ways to expand the boundaries of what is possible with existing BMW models has been the singular purpose of the craftsmen at BMW M. Now the BMW X5 M and the BMW X6 M are the first all-wheel-drive models to offer the remarkable performance, dynamic driving experience, athletic design, and premium quality of a BMW M product.
Saturn dealers, customers, managers, assembly workers, The Presidential Task Force on Automobiles, what’s left of General Motors and the mainstream media (MSM) would all like to believe there’s life after GM for the moribund “rethink” brand. A group of investors calling themselves Telesto Ventures has stepped forward to enable these champagne wishes and caviar dreams. Their plan: rebrand other people’s stuff and sell them as Saturns. It’s the same sort of plan that saw Americanized Opels in Saturn showrooms—that led to a 58 percent sales drop so far this year, compared to 2008’s miserable 188,004. (Toyota sold 158,884 Priora last year.) It was also a part of Cerberus’ original plan for the bankruptcy-bound Chrysler Corporation. Anyway, the MSM’s down with Saturn’s “rescue.” “While such a business model doesn’t exist today,’ the Detroit Free Press almost warns, ‘Telesto’s backers say the global overcapacity among automakers and the growing number of start-up firms in China and elsewhere would give the reformulated Saturn several possible sources of new vehicles.” Gullible much?
“d” as in diesel. So, no, this bud’s not for you, American oil burner fans. But it does represent a general trend for the Roundelians. See if you can spot it: “The arrival of the BMW X3 xDrive18d represents a new entry point for X3 ownership and is a significant draw for those new car buyers looking to balance economy with performance. Powered by a 143hp 2.0-litre diesel engine, it is capable of 45.6mpg on the combined cycle and records CO2 emissions of just 165g/km. With a six-speed manual gearbox as standard, the BMW X3 xDrive18d offers 350Nm of torque from 1,750rpm through to 2,500rpm which makes for effortless overtaking and town driving.” Yes, “a new entry point for XXX ownership” is the new way of saying “look out down below!” Or, if you prefer, “I spit on your brand equity!” Anyone know the cheapest BMW for sale in the US and UK? Cheapest as in least expensive.
I bought my ’05 Scion xB two years ago (used) with 15k miles. Perfect condition; mommy driver. Within a couple of weeks, I started hearing a chirping sound when the clutch was not engaged (pedal up); it stopped as soon as I put some pressure on the pedal. Bad throw-out bearing! Dealer confirms, replaces bearing, resurfaces flywheel, and throws in a new clutch as “goodwill gesture.” I’m very happy with how I was treated (it was under warranty, of course). They tell me these bearings hardly ever fail; I must have gotten a fluke bad bearing.
The Internet is a funny place both in the ha-ha and peculiar senses of the word. I’m always on the prowl for coffe-snorting PR irony: the discrepancy between spinmeisters’ all-too-realistic expectations of media complicity and my time-tested, hard-won, inherently non-commercial cynicism. As for the peculiar part of the program, I get emails along the lines of “Do you know where I can get a windscreen for my Chevy Trailblazer?” I answer them politely, referring the proto-TTAC fans to model specific forums or websites. A request came over the e-transom today that took me aback—to driving automotive oddballs like the Chrysler Pacifica, E55 AMG Wagon and minivans. So I thought I’d toss this one (geddit?) to our B&B to see if you could save me the postage. “Could you please provide a list of new four door sedans that have six passenger seating available by make and model? I have long legs and really like the extra legroom provided when the shift lever is placed on the steering column. I currently drive a 2008 Buick LaCrosse with six passenger seating. However, I’d like to consider all possible four door sedans for my next purchase. Thanks very much, XXXXX, Edmonds, Washington.”
Yellow times may shorten as the city of Billings, Montana, rushes to install red light cameras before the state legislature has a chance to ban them. The Billings City Council voted 8–3 Monday to empower Redflex Traffic Systems, a private company based in Melbourne, Australia, to issue automated traffic citations in return for a cut of the revenue collected. Billings needs to act quickly because the state legislature last Thursday entered into final negotiations on legislation that would ban red light cameras.
While GM finishes its 40-year rush to judgement, heading for its June 1 date with a bankruptcy judge, there are still such things as GM customers. You know; millions of people who own GM products. And these people are—shock!—still buying cars and getting their cars serviced. And there, on the sharp end, dealers, salesmen, service managers and technicians are all attempting to come to grips with the competitive, financial and psychological dangers implicit in a GM C11. To calm these troubled souls, GM’s North America Vice President of Vehicle Sales and Service has been Bob Marleying these forward troops, telling them that every little thing’s gonna be alright. To that end, last month, Mark LaNeve announced the launch of a “weekly conversation” with GM dealers: “reinventing GM.” There was one e-mail communication on April 3.
GM China—and by extension SAIC—had already said bu yao (don’t want) in reaction to media reports that GM would sell to its Chinese partner, SAIC, the Buick brand or the exclusive rights to use this brand in China.
I hate the word fetish. It beckons the thoughts of neurotic foot lickers and perverts the world over. I always believed the word “aficionado” was more apt for my liking of old Volvos. It’s true that a lot of normal folks idolize the Porsches and Ferarris that embody the “speed” of the automotive experience. Some of us love the luxuruies of Rolls Royces and Bentleys . . . hell some idolize the Toyonda clones for their high quality and simplicity. In times past I’ve been ‘all’ there. I love the contributions all these manufacturers have given to our culture and our garages. But these days, I really appreciate longevity . . . and frugality . . . and functionality . . . which is why I absolutely love old Volvos.
Even as it heads for Chapter 11, GM isn’t giving up its plug-in hybrid Hail Mary electric – gas Chevrolet Volt without a fight. (If at all.) Turning its back on their number one fanboy, Dr. Lyle Dennis, GM PR, has blessed CNNMoney Senior Shill—I mean auto writer Peter Valdez-Depena with a drive in their Volt test mule. The bottom line: it moves. As for everything else—range, recharge time, “charge sustaining mode,” etc.—all we get is regurgitated prevarication and promises. Or, more musically, smoke gets in your mirrors. “The guts of the car were about 80% those of the final Chevy Volt, according to Vehicle Line Executive Frank Weber.” Did Depena even look under the hood? I would imagine not, as he took everything he was told on faith and neglected to mention the fact that “old” GM will never build this machine. So, children, what did we learn today?
Hi Robert – My name is Karah Street and I work for a PR firm that represents smart USA. I see that you have written about the new crash test conducted with the smart fortwo by the Insurance Institute for Highway Safety (IIHS), in which the smart for two was paired against a Mercedes C-Class. Two other cars were paired with larger vehicles from the same automaker (Honda Fit vs. Accord, and Toyota Yaris vs. Camry). What you may not know is that this test represents a type of crash that is rare and extreme — less than 1% of all accidents can compare to this type of test — and it is neither recognized nor required by federal safety regulators. By pitting “big vs. small,” this test seems to have one goal: to imply that bigger, heavier cars are always safer.
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