As we’ve noted before, Hyundai and Kia have been quick to exploit the weakness of the domestic auto industry by advertising their American-made cars as American-made cars. Now, they’re taking the attack to a whole new level, as Hyundai USA President John Krafcik tells CNN Money that his brand will build 80 percent of its vehicles in the United States by next year. If the Korean brand can actually achieve that goal, it would make Hyundai’s lineup the most American-built full line on the market. And though he insists that Hyundai doesn’t make decisions about production based on PR, Krafcik can’t help but twist the knife, saying
I’m going to build my three best selling cars in the US. Ford builds its best selling car in Mexico.
Scientific studies are all well and good, but sometimes the simplest studies can provide the most fascinating insights. Take, for example, the recent series at Autosavant entitled “Brand Awareness? It’s Elementary” (part two here). The study was inspired by a simple question: if you ask kids to name their favorite car, what kind of results will you get? Their answers reflect not only the power of automotive brands in popular culture, but also the basic level of automotive competency of the next generation of gearheads. Somewhat shockingly, not a single kid appears to have answered “Bumblebee.”
Part three in our ongoingseries features Honda’s Odyssey, and makes “hipper than thou” minivan marketing an official trend (remember kids, you need three to make a trend). Post-irony never saw this one coming…
Executives at GM Europe were reportedly outraged when “Mr Opel” jumped ship to arch-rival VW, after the Wolfsburg boys entered an alliance with Suzuki. After all, Demant had been instrumental in developing the Opel Agila, a rebadge of the Suzuki Splash built in Hungary. Since Demant’s departure, Opel has left the Agila to the wolves, saying it would develop an all-new “premium” city car, to take on VW’s Up head-on. VW’s response: deciding that its Euro-focused Up was too expensive for the booming Indian market, and announcing to Autocar that instead it would… rebadge Suzukis. The Suzuki Alto (aka Maruti Suzuki A-Star aka Suzuki Celerio, aka Nissan Pixo) will form the basis of an entry level Indian VW, while the Suzuki Wagon R will underpin an Indian Skoda model. Because nothing builds a global brand like a good rebadge (just ask GM). Sounds like Demant should be pulling a paycheck from Suzuki as well as from VW.
Tomorrow your humble Editor boards a plane for Michigan, en route to a date with the Chevrolet Volt. TTAC has followed the Volt’s bumpy road to production-readiness since Bob Lutz decided that the Prius had to be “leapfrogged,” and we’ve tracked every change to the Volt’s mission, message and mechanical blueprint along the way. And though cars don’t exist in a vacuum, giving the Volt a fair review will require us to leave a lot of this contextual baggage at the door.
Built on GM’s “Theta Premium” chassis alongside its Cadillac SRX sister in Ramos Arizpe, Mexico, the Saab 9-4X crossover is less than completely Swedish but more than just a rebadged SRX. Specifically, at a base curb weight of 4,431 lbs (with GM’s 3 liter V6 driving the front wheels), it’s over 200 lbs more crossover than a base SRX.
America’s “jobless recovery” is a strange economic phenomenon: though businesses are returning to profitability, jobs are not trickling down to lift all economic boats. Though the causes and consequences of this economic conundrum are beyond the scope of a humble car blog, a snapshot of luxury/premium brand sales (via Truecar) show a similar dynamic at play in the world of car sales: luxury sales are recovering while year-to-date sales of mainstream standbys like Honda and Toyota are sitting flat (up 1.1% and 1.4% respectively). Of course the other dynamic at play in the first three quarters of 2010 is the recovery of domestic brands, but even among those successes, the luxury-premium brands are doing best (witness Cadillac sitting atop this chart, and Buick’s even faster recovery (up 57.5% YTD)). At least if you look at year-over-year percentage improvement rather than overall volume levels. Unlike past eras of economic and energy uncertainty, luxury cars, not spartan compact pickups and fuel efficient hatchbacks, are spurring recovery in the auto sector.
So, how does the maker of the world’s cheapest mass-market car go about building India’s first home-grown upscale crossover? First, go buy several small European automakers…
OK, we get it. Ford’s all-new global Ranger is “90 percent of an F-150” and it would make as much sense to sell it here as it would for Toyota to sell the Hilux alongside Tacomas and Tundras. We may not completely buy the argument that Fiesta, Focus and F-150 make for an adequate replacement to a true compact pickup in the US, but having starved that segment for so long, it’s understandable that Ford would now leave it to die. After all, nobody’s offered a truly new compact pickup for so long, it’s almost impossible to say whether the consumers or manufacturers killed off the once-burgeoning segment of efficient, utilitarian trucks.
With Mahindra struggling to offer its diesel pickups to American dealers, we aren’t holding out much hope of anything compact pickup-related changing anytime soon. Sure, there are whispers of a GM compact pickup in development (and some promising talk from Nissan), but that’s strictly in “wild ass rumor” territory. Meanwhile, VW is trying to apeal to more American consumers, doesn’t have a full-size truck lineup to cannibalize, and yet refuses to send its Amarokstateside. If any of the automakers is going to take a risk on compact (preferably diesel) pickups, Volkswagen seems like the one to do it. Alternatively, Mazda has its own version of the new Ranger and no full-sizers to cannibalize. Someone step up here!
America has always been a land of extremes, and our automotive scene is no different. While current automotive debate obsesses over a high-efficiency halo car, our domestic auto industry is mounting a comeback largely on the back of pickups and large cars and crossovers. Meanwhile, we’re falling behind in the quest to make all cars more efficient with practical “bolt-on” systems like “stop-start” or “microhybrid” systems that turn off gas engines at stops. So what are we missing out on? According to a report from SeekingAlpha, stop-start systems provide
estimated fuel savings range from 5% in government mandated tests and 10% under real world city-highway driving to almost 20% in congested city traffic
Which would provide a hell of a lot more fuel savings than any high-price, limited-production eco-halo car. But, as Mazda has complained, the US EPA test cycle doesn’t provide any Monroney Sticker advantage to stop-start systems, even if they provide real-world improvements in fuel efficiency. Maybe instead of trying to keep EVs and plug-in halos on subsidy life support as long as possible, our government should be looking at ways of incentivizing across-the-board efficiency improvements like those offered by stop-start systems.
A report in Japan’s Kyodo news agency [via Reuters/Automotive News [sub]] must have raised a few eyebrows in Japan: thanks to a rising Yen, Toyota is reportedly eying an end to Corolla exports from Japan by 2013. Toyota has since emphasized that
it has made no decision to halt production in Japan of its Corolla automobiles for overseas sales but said it was always considering an optimum global production structure.
The yen hit 81 to the dollar today, both on Yen strength and dollar weakness. ( A Euro buys 1.41 dollars again – get ready for Eurotrash invading Manhattan.)
Toyota has already shifted the bulk of its Corolla production overseas: last year it built 815k Corollas outside of Japan, and only 235k in its home country (60 percent of which were exported). Still, Toyota has long considered stability in its Japanese workforce as core institutional value, and previous currency rises led to changes in design and quality philosophy rather than reductions in Japanese production levels. But then Toyota is no longer in a position to release currency pressure by targeting “fat” or “overquality” product the way it could in the early 90s. The “overquality” simply isn’t there anymore. Like everyone else, Toyota’s major competitive option is to move production closer to cheap labor and large markets.
Chrysler has taken advantage of the kerfluffle over GM’s Volt to release the first full images of its most important car to date: the Chrysler 200, or the artist formerly known as the Sebring. As with the Volt, we’re not entirely convinced it’s as revolutionary as Chrysler’s making it out to be, but we’ll obviously wait for a test drive to reach a definitive conclusion. Meanwhile, the 200’s design has more than a few hints of Sebring about it (and that’s without a proper side-on view), although the overall effect is of a much-cleaned-up car. It’s not distinctive in a way that’s going to instantly win over skeptics, and Chrysler’s midsize sales probably won’t improve until reliability and resale data shows real signs of improving, but the journey of a thousand miles begins with a single step. Given what Chrysler was working with, namely the least competitive car in its segment, this 200 is shaping out quite nicely as a first, tentative step towards viability.
The autoblogosphere is agog at the revelation that the Volt’s gas engine occasionally powers its wheels. The GM-created “category” of Extended-Range Electric Vehicles (EREV, or E-REV) as uniquely epitomized by the Volt is suddenly revealed [by Motor Trend via GM] to
[have] more in common with a Prius (and other Toyota, Ford, or Nissan Altima hybrids) than anyone suspected.
So, why did the putative “Father of the Volt” (aka “Maximum” Bob Lutz) tell the car’s primary fan site gm-volt.com that the Volt was born because
My desire was to put an electric car concept out there to show the world that unlike the press reports that painted GM as an unfeeling uncaring squanderer of petroleum resources while wonderful Toyota was reinventing the automobile, I just wanted something on the show stand that would show that hey we’re not just thinking of a Prius hybrid here, we’re trying to get gasoline out of the equation entirely.
A longtime critique of General Motors here at TTAC is that it needs to pick enduringly appealing names for its products and stick to them, instead of shuffling through some eighty nameplates for midsize and smaller cars since Toyota introduced the Corolla. Still, this approach doesn’t advocate simply freezing time, and calling every compact Chevy a Cruze from here to eternity. If you’re going to stick with a name, it has to be good, and it has to mean something.
Enter the Aveo, which is about to be replaced by another Daewoo-developed hatchback (made in the US this time), but should (if GM can be believed) represent an improvement over the unlovable outgoing model.GM’s North American supremo Mark Reuss is still wavering on the name, refusing to commit to Aveo, but unwilling to suggest an alternative nameplate. Which brings us to today’s question: is it nobler for the car to suffer the slings and arrows of outrageously poor associations with the name Aveo? Or should GM put the name to sleep, perchance to dream up a better, more enduring one? Is consistency good even if it means keeping one of the most maligned nameplates this side of “Sebring”? Aye, there’s the rub.
Recent Comments