If you exist outside the fast-paced world of the automotive branding community, you might believe that the point of car brands is to sell cars. Needless to say, you’d be wrong. The big buzzword around car brands, particularly the more niche and eco-friendly brands is “mobility.” As in “we must leverage our brand values to provide a broad-based mobility strategy for the cities of the future.” Or, to put it into layman’s terms, “screw cars, we gotta start building scooters.”
Bloomberg reports that Ford will not build its Kuga compact crossover at its Louisville, KY plant due to the falling Euro and UAW recalcitrance. According to the report
The promise of Kuga production in Louisville began to fall apart in November when UAW members rejected Ford’s request to match givebacks it gave General Motors Co. and Chrysler Group LLC. Ford’s U.S. rivals, which each reorganized in bankruptcy last year, were granted a six-year freeze on wages for new hires and a ban on some strikes until 2015… The euro has fallen 14 percent against the dollar since Ford reached a tentative deal with the UAW in October to build the Kuga in Louisville alongside its mechanical twin, the Escape. At the time, the dollar had declined against the euro, lowering the cost of U.S.-made goods. Since then, the euro has dropped amid concerns Europe’s debt crisis may trigger another recession.
Barclays analyst Brian Johnson explains
This is a reminder to the UAW that Ford’s U.S. cars don’t have to be produced in the U.S. Ford’s global architecture allows them to build anywhere. That’s good news if the U.S. has competitive labor costs. It’s bad news if they don’t
Remember when Hyundai was famous for cheap, tiny hatchbacks instead of sculpted, Lexus-alike sedans? Though Hyundai’s first hybrid will be based on its popular Sonata, its first-ever EV is based on its old-school i10 hatchback. The AP reports that the BlueOn (remember, blue is the new green) will be delivered to Korean government fleets this year, with sales to the public starting in 2012. Hyundai hasn’t disclosed whether the BlueOn’s pricetag will be as old-school Hyundai as the i10, but with only 87 miles of EV range and 80 MPH from 16.4 kWh of Lithium-polymer batteries, it looks like low-cost city transport is the name of the game. But with a planned production volume of 2,500 units per year, the BlueOn shows how far Hyundai still has to come before catching up with the Nissans and Mitsubishis of the EV world. Then again, Hyundai’s come from behind before…
The first rule of blog relations: don’t let the blogs know that you have a blog relations program. The second rule of blog relations: bloggers are children. Use reverse psychology. BMW did… and look, it just worked! Anyway, if meta-irony isn’t your thing, feel free to to never mind the bollocks and simply speculate about this forthcoming BMW concept. Giant wheels, a tiny exhaust… what could those wacky Bavarians be up to?
I think there’s a decent business case if you take the long view
a showroom of 2,500 to 3,000 square feet would be sufficient to start… To get there, some dealers are going to have to take it slower. They’ll have to offer a separate showroom but go beyond that as more product becomes available.
healthy gross profits of up to $1,500 on each Fiat 500
The last time we looked at the evolving Opel Astra coupe, I wondered
what do you call a Buick coupe that could fit under the hood of a classic Riviera?
Though we have a much better idea of what the Astra Coupe looks like, and we know that the Astra sedan/wagon will be called the Buick Verano in the US market, the question remains unanswered. Surely “Buick Verano Coupe” is too bland for what could (in theory) be the next Integra/RSX. Skyhawk? Apollo? Wildcat? Or is the dearth of promising names indicative of the challenges facing any compact Buick Coupe?
Via Autocar come these pictures of a jacked-up Fiesta variant undergoing development testing. Rumors of a Fiesta-based MPV have been rampant, as European competitors have been bombarding the B-segment with bigger, and/or butched-up new models like Kia’s Venga (and it’s forthcoming sibling, the Hyundai ix20), Opel’s suicide-doored Meriva, Toyota’s Verso S,and VW’s PoloCross. Ford’s Fiesta-based entry could resemble the brand’s Iosis-Max concept, and it will probably be built in Romania. Based on the dearth of camouflage, we’d also guess it’s going for the “butch” more than the “big” section of the B segment. Needless to say, it’s unlikely to ever arrive in the US, where the idea of taking a B-segment hatch into the dirt occurs only to the desperately unwell.
When Opel needed a a low-cost subcompact for the European market, it did what all good car companies do: rebadged a Suzuki. And thus, the Opel Agila was born. For the latest version of the Agila, which debuted in 2008, Opel opted to let Suzuki build the car itself at its Hungarian plant (alongside the Suzuki SX4 and Fiat Seidici). It also tasked its Managing Director, a man known around the office as “Mr Opel,” with developing the new micro-MPV in partnership with Suzuki. For his trouble, Mr Opel (aka Hans Demant) was then shunted aside by GM, and ended up being poached by VW to head up “international project coordination.” Quite by coincidence (or not), VW’s biggest international project is in building new low-cost small cars with… Suzuki. Automotive News [sub]’s Paul McVeigh notes that
Neither GM or Opel has commented publicly on Demant’s defection to archrivals VW. But executives are said to be very angry in private.
But then, GM could hardly have expected Demant to stick around after having been shuffled off to “intellectual property protection” after nearly 40 years of service to Opel at some of the highest levels. The fact that he’d just been demoted at a time when Opel’s owners in the RenCen were enjoying record-low popularity in Germany made the move all the more likely. And because it’s happened at a time that Opel is struggling for its life makes the move just as damaging to GM as it is a windfall for VW.
Chrysler execs met with some 400 potential Fiat dealers today to discuss plans for a new network of Fiat and Alfa-Rome brand stores in the US, and as we have noted, a certain amount of overlap can be expected. Chrysler says that “as many as 200” stores could be opened for the Italian brands, but the company has only identified 119 metropolitan markets in 38 US states where it projects sales growth in small car sales. Even with only “about 165” stores planned for the initial rollout, quite a few markets could host dueling Fiat/Alfa stores. According to the NYT’s Nick Bunkley, Idaho, Iowa, Alaska, Mississippi, Montana, New Hampshire, South Carolina, The Dakotas, Vermont, West Virginia and Wyoming will not receive Fiat/Alfa dealerships. Meanwhile, the AFP reports that Chrysler plans to sell 50,000 Fiat 500s in 2011 alone, meaning each of the 165 stores will sell an average of 303 units per year.
When Mazda’s next-generation Mazda5 debuts later this year, it will mark the high-water point for the brand’s Nagare design language. Named for a 2006 concept that first showed off the dramatically flowing (some might say overwrought) look, Nagare has not been a stunning success, and Mazda announced several months ago that the Mazda5 would be the last car to use the design language. At that time, Mazda said it intended to reposition itself as “The Japanese Alfa-Romeo,” but lines like that could mean literally anything. Today, with the debut of the Mazda Shinari Concept, it’s clear that Mazda’s new look is headed in a far more conservative direction. In fact, to our eye, the sleek four-door looks quite a bit like the meeting point between the Tesla Model S and the Fisker Karma. In any case, it fits the “Japanese Alfa-Romeo” billing quite well. Plus, it doesn’t look like a deranged Pokemon. Now that’s progress!
Having recently invested in an all-new global compact car, the Cruze, it was inevitable that Chevrolet would eventually come out with an MPV based on the Cruze’s underpinnings. When the unavoidable people-mover debuted at the 2008 Paris Auto Show as the severely handsome Orlando Concept, its clean yet distinctive look certainly got our attention. And with initial plans calling for US production (Hamtramck), it seemed that The General really was ready to put up to seven Americans in a compact-car-based vehicle. But after we called the Orlando “The Cruze To Wait For,” GM entered bailout hell and the Orlando was canceled and uncanceled for the US market with every new executive that passed through the RenCen.Now, with the first images of the production Orlando hitting the web, the post-concept reality of Chevy’s “Delta MPV7” reflects its troubled development.
The very European-looking concept has been softened into what looks more like a US-market crossover (i.e. something you might spot in Orlando)… but it’s going to be made by Daewoo in South Korea, and is focused on the European market. And based on the current plans, Americans looking for this kind of car from GM will have to spring for a GMC Granite “Urban Utility Vehicle.” Because apparently GM’s product planners think Europeans are into generic, American-named people movers, while Americans are looking for over-the-top designs and an upmarket brand from their fuel-efficient kiddy haulers. On the other hand, as little sense as that premise makes, the production look of the Chevy Orlando won’t exactly inspire anyone to contradict it.
Mercedes, BMW and Volkswagen/Audi are all moving inexorably towards a major downmarket expansion, as they develop a new generation of compact and subcompact cars based on front-wheel-drive architectures. Though Volkswagen has played in this space for some time, the move is a major cultural shift for BMW and Mercedes, which are typically associated with rear-drive luxury cars, particularly in the US market. But the truth is that the German luxury brands have always sold products in the German and other European markets that don’t match their premium overseas brand images (see, among other examples, the ubiquity of Mercedes taxis in Germany). But the strange thing about this next push towards smaller cheaper cars is that it’s not not aimed at Germany at all.
TTAC has a long, proud tradition of tearing into puffy automotive journalism, so it was not without a little trepidation that I wrote in the comments section of Michael Karesh’s excellent review of Zero To Sixty that
Toothless reporters put execs at their ease… which allows them to say naive or revealing things that toothy bloggers can then rip into. In a weird way, the worse the reporter, the better the reporting (as long as the quotes are then duly digested). As time goes on, I find myself more and more at peace with this evolving media food chain… and TTAC’s place in it.
To be clear, this is not an endorsement of toothless coverage per se, it’s just a pragmatic response to the reality that auto industry coverage will continue to be dominated by PR-approved puff. And this video provides yet more proof that non-threatening journalists are actually the most effective at snagging scoops, even if they’re totally unaware of said scoop. Which is where the bloggers come in.
(Read More…)
Dodge previews its 2011 Charger by showing a police version almost completely shrouded by the darkness of what appears to be a typical Detroit neighborhood. And as much as we’d like to see more of the next-gen Charger, we understand what Dodge is going for here: after all, government fleets seem far more interested in purchasing Chrysler Group products than we lowly consumers.
As Europe moves towards ever more premium subcompact cars, Opel has sought to hop on the bandwagon by giving its Corsa-based Meriva Micro-MPV stylish suicide doors. And with Buick moving towards simple rebadges of Opel’s product, the suicide-doored Meriva seems almost certain to arrive stateside as the so-called “Baby Enclave” MPV, expected to debut in the US market in 2012. There’s little doubt of the suicide door concept’s gimmick value, and we’ve said before that this factor alone could get Americans excited about the first-ever Buick subcompact… but just how much of a difference do the rear-hinged doors make in real life? According to the first German-market comparison test (by Auto Motor und Sport print edition), the Meriva’s suicide doors are still just a gimmick.
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