ZazHub.com Blog

The Man Van: An Answer to a Question Nobody Asked?

2011-02-11T05:39:00.000-08:00

At the Chicago Auto Show previews, Dodge CEO Ralph Gilles announced a full line of R/T models including the Charger, Challenger, Journey, Durango and Grand Caravan. The Charger and Challenger, of course, are understandable and one might be able to make a case for the Durango. The Journey and Grand Caravan, though? Mmmm, not so sure.

Gilles made his case for the Grand Caravan by referring to it as the “Man Van”, the kind of vehicle that the rugged individualist who just happens to have soccer kids wouldn’t be embarrassed to be seen in. Now, the Caravan R/T does come with a number of upgrades over the Mommy versions including body-colored greille, a “performance-tuned suspension”, its own unique, “all-black interior with perforated black leather seat, red stitching, leather-wrapped steering wheel and shift knob and a premium sound system with nine-speakers, a subwoofer and 506-watt amplifier”.

Oh, and a chrome “R/T “badge on the tailgate.

Overall, the effect is subtle in the extreme, though Gilles suggested that it was meant to be that way. (And I do think that a special stripe package, ground effects and Brembos would only serve to make the neighbors chuckle.)

There probably is a market for a vehicle like this, however small, and it didn’t cost Chrysler a ton of money to develop. Still, I have to wonder, was someone actually asking for this?

--M.D.

Smart Bikes: Good Idea or Bad?

2011-01-13T07:11:00.000-08:00

With sales of its Smart ForTwo heading for oblivion, Smart has come up with this alternative. Four wheels? Check. Two passengers? Check. Much lower price? Check. Maybe they're on to something.

--M.D.

Focus Wagon: Good Idea or Bad?

2011-01-13T06:52:00.001-08:00

Ford brought a 2012 Focus Wagon to the Detroit show but you can't have one. This beautiful little hauler is not coming to the U.S. That's a bad idea.

--M.D.

Fiat 500 Mopar Edition: Good Idea or Bad?

2011-01-13T06:36:00.000-08:00

How the world has changed. Chrysler reinvigorates its Mopar parts and accessories division and the soon-to-be-released Fiat 500 gets in on the action.

--M.D.

Scion iQ: Good Idea or Bad?

2011-01-11T17:00:00.001-08:00

These are photos of the upcoming Scion iQ. Toyota has been shopping this around at the car shows for a couple of years now and will finally bring it to the U.S. market as a Scion. It is aimed directly at the Smart ForTwo (get it? Smart . . . iQ?).

Toyota is calling the iQ a 3+1 passenger car. The front passenger is supposed to sit forward of the driver to allow enough room for someone to sit in the back seat behind him/her. The minuscule space behind the driver is the +1 part of the equation and apparently means a small pet or single bag of groceries. With the rear seat in the upright position there is almost enough cargo space for a few file folders or a laptop case.

Also notice the luxurious fabrics in which the interior is swathed. If this doesn't bring Scion back from the brink, well perhaps nothing can.

--M.D.

Hyundai Veloster: Good Idea or Bad?

2011-01-11T11:43:00.001-08:00

At the North American International Auto Show this week, Hyundai unveiled the Veloster, presumably a concept car but we have to wonder. First, Hyundai brought about five of them to the show. Second, they all seemed to be pretty close to production ready. Third, they let everybody climb in and out to their hearts' content. Car makers don't typically do those things when they bring concept cars to shows.

Also, look closely at the photos and you'll see something rather unusual: This is a 3-door car with a coupe-like profile on the left side and a sedan-like profile on the right. It would take a lot of guts to actually build such a car but Hyundai has been making some pretty bold moves lately.

--M.D.

The Guy Just Can't Stay Away From Car Shows

2011-01-11T11:16:00.000-08:00

Bob Lutz was spotted yesterday at the North American International Auto Show in Detroit. He said of the 2012 Buick Verano: "Glove box is nice and deep."

--M.D.

Toyota Goes Nut: Adds Another Prius Model

2011-01-11T10:58:00.000-08:00

In a desperate attempt to regain lost market share, Japanese car maker Toyota unveiled a second Prius model to try to woo buyers away from Ford, Hyundai and Kia. Called the Prius V (for versatile), the wagon-like new model will be available later this year. It offers more cargo volume than the Prius sedan but is considerably less fuel efficient.

Toyota also promised to bring out a third Prius model, the Prius C (for compact), at a future date. The Prius C will be smaller than the current Prius and, according to Toyota's U.S. chief, Bob Carter, will appeal to young urbanites "who want an eco-sensitive, high-mileage, fun-to-drive Prius with a roomy interior". (But, presumably, who find a regular Prius just too darn big.)

--M.D.

October Sales: The Surge Continues

2010-11-04T08:35:00.000-07:00

The numbers are in and the surge in U.S. auto sales is continuing. American car makers all were on the plus side with Chrysler leading the way with a 42.1 per cent increase over 2009. Ford was next with a 23.6 per cent rise and GM brought up the rear with an 8.1 per cent bump. (Last year, of course, GM still had some Pontiacs, Saturns, etc., to sell.)

Most Japanese companies did well, too. Subaru again lead the pack with an increase of 29.4 per cent, Mazda was next with 24 per cent, followed by Nissan at 20.4 and Honda at 19.8. Things are so good right now that even little Suzuki saw gains with a 21.4 per cent increase. That was still just a little over 2000 cars, though, barely a rounding error for the sales leaders.

Toyota was the lone sour note in all the numbers with a drop of about 1 per cent. Toyota's market share fell from 18.2 per cent last year to just 15.4 this year, well behind Ford now.

The Hyundai group, which includes Kia, is still accelerating faster than any of the other Asian companies with a 43% jump in October.

European manufacturers all did well here last month. Porsche saw an astonishing 66.5 per cent rise, BMW 16.8 per cent and Daimler posted a 6.8 per cent increase.

(Volume changes are based on daily sales rates. October 2010 had 27 sales days versus 28 days in 2009. )

Source: Ward's Automotive

--M.D.

Winter Storage Tips

2010-10-22T05:12:00.000-07:00

Sadly, it's almost time again. If you have a convertible or other special interest car that goes away for the winter you need to start thinking of getting it ready for hibernation soon. Here, again, are some tips for winter storage.

Starting and running your car for short periods during winter storage is not recommended for

any reason. Doing so will add moisture to the engine - diluting the motor oil and can cause rusting in the exhaust system.

• Wash & wax the exterior and thoroughly clean the interior.

• Check antifreeze for cleanliness & strength. If replacing it use a 50/50 mixture, antifreeze &

water.

• Change oil & filter.

• Add STA-BIL Fuel Stabilizer additive to gasoline following directions on bottle, then fill fuel tank, drive at least a few miles to draw additive into fuel system.

• Loosen gas cap to release any pressure on the fuel system, then re-tighten cap.

• Battery storage – Removing the battery for storage of less than 6 months is optional. Just use a

“smart” charger with a trickle charge mode that automatic keeps the battery at full charge during storage. If you decide to remove the battery (always disconnect negative first for safety), store it in a cool dry location, off of concrete floor and charge it periodically with a trickle charger.

• Inflate tires to 45-50psi to prevent flat spots or remove tires and mount a cheap set of substitute tires (“donut” spares work well for this).

• To prevent rusting of the brake rotors, remove wheels and wipe both sides of the rotors (back side is difficult) with a cloth or shop rag soaked or sprayed with WD40.

• Place steel wool in the tail pipe and air intake snorkel to keep critters out.

• Loosen the top latches to relieve the strain on the top and roll down side windows 1/2 inch or so to remove pressure on the top gasket seals.

• Place a container of Irish Spring soap, shredded or shaved, in containers inside the cabin. Mice

hate it and car will smell great next spring. (Some sources recomment fabric softener dryer sheets, instead.)

• Cover with a car cover, an old sheet or blanket.

• Leave a copy of these instructions on the front seat so you can undo these steps in the spring.

• Pray for an early spring.

Chevy Cruze: They Got It Right

2010-10-07T07:51:00.001-07:00

After some highly forgettable small cars like the Citation, Corsica (remember that one?), Cavalier and Cobalt, Chevrolet knocks out another gentleman’s “C” with the new Cruze and this one might actually leave a lasting impression.

The Cruze is based on GM’s Delta II architecture, a global platform which will serve as the basis for various models in most of GM’s markets. Highlights include increased structural rigidity, more high-strength steel and, of course, reduced noise, vibration and harshness.

The Cruze is a fairly attractive little car inside and out, at least in LTZ trim like the sample I drove recently. GM seems to have paid particular attention to interior trim as the one offered for this drive was almost class-leading in look and feel. Controls were well laid out and easy to decipher and use. The off-white leather seats weren’t perforated but felt comfortable enough on the short drive I was able to take. Front seat room was fine but things were a bit tight in the back.

The Cruze is extremely well equipped, especially in LTZ trim. Satellite radio, OnStar with turn-by-turn navigation, automatic climate control, ten air bags, heated leather seats, bluetooth connectivity, and more are standard on the LTZ and available or standard on lower lines.

The base LS model comes with a 1.8-liter I-4 producing 138hp. All other models get a 1.4-liter turbocharged I-4 also producing 138hp. The engine in the model I drove was very strong with very little turbo lag. Noise and vibration were pretty well isolated but the engine was just little raspy and a bit of harshness made it through to the interior.

Base prices start at $16,275 for the base LS and top out at $21,975 for the LTZ. (Looking at the build-and-price on Chevy’s Web site, the LS sounds like a typical low priced stripper. Even the cover for the spare tire well is optional.) Fuel economy is advertised as 26city/36highway for the 1.8-liter with a 6-speed manual and 24/36 for the 1.4-liter with a 6-speed automatic.

Overall, the Cruze is a very nice effort. This one of the hottest segments in the market with some very competitive products already here or on the way. The Cruze should at least hold its own -- for now.

--M.D.

September Auto Sales Surge

2010-10-01T12:06:00.000-07:00

Most of the sales figures for September are in and it turned out to be a very good month for almost everybody, as long you weren’t a marginal Asian brand. Overall, sales of light duty vehicles rose some 29% over last year.

Chrysler led the charge among domestic companies with a 61% increase over a particularly dismal September last year, although the pride of Auburn Hills couldn’t quite break the 100,000 mark. Ford was next with a solid 46% jump and GM brought up the rear, and underperformed the market, with an 11% increase.

Asian brands fared slightly less well, though most posted increases. Toyota was up 16.8%, Honda gained 26%, Nissan rose 34%, Subaru surged 47%, Mazda increased 30% and Hyundai/Kia climbed 44%. Not so impressive were showings from Isuzu which was down 9% and Suzuki which tumbled nearly 12%. (Combined sales from these two automakers were less than Porsche.)

European marques all were up: Saab a whopping 133%, Porsche 25%, BMW 20%, Daimler 18% and VW 14%.

Sales in September of 2009 were especially weak as the market was coming off the “cash for clunkers” program which had driven up demand and depleted dealer inventories. Still, up is always better than down and it is also gratifying to see domestic companies regaining lost market share.

(source: Wards Automotive)

--M.D.

Lincoln To Trim Dealers, Revamp Image

2010-09-27T19:08:00.000-07:00

Hot on the heals of dumping Mercury, Ford is examining strategies to hone the image and boost sales of its one remaining premium brand, Lincoln.

First step will be to reduce the number of dealers by 200 from the current approximately 1200. Cuts will be aimed at dense urban markets. Remaining dealers will be expected to upgrade facilities and polish their customer service skills to improve the buying experience and bring it more in line with other luxury brands.

Once one of the markets leading luxury marques, Lincoln now ranks low in customer loyalty, resale value and, most importantly, total sales which are a fraction of what they were just a decade ago. Ford’s Mark Fields promises to invest heavily in Lincoln over the next few years, bringing seven new or refreshed products to market.

Will it work? Selling luxury cars is becoming increasingly difficult as luxury-defining features are becoming more and more commonplace. Power windows, push-button start, leather seats, bluetooth connectivity? You can get all that on a Fiesta. Is a fully loaded Taurus any less “luxurious” than a Lincoln MKS? $20,000 less?

Lincoln needs to find a way to define itself in a crowded field the way Cadillac did.

(source: Automotive News)

--M.D.

Chrysler To Upgrade Sebring, Rename It ‘200’

2010-09-21T07:20:00.001-07:00

At a dealer confab last week Chrysler laid out its plans for a revamped product line for model year 2011. At the top of the list was the new Chrysler 200 which will take the place of the current Sebring.

The 200 will use the existing Sebring platform but with extensive revisions. For example, chassis tweaks include revised body mounts, suspension geometry, rear sway bar, noise/vibration/harshness reductions, acoustic laminated glass for the windshield and front door windows and more. Chrysler is also promising higher quality materials throughout the interior.

Two engines will be offered, a 2.4-liter I-4 with either a 4-speed or 6-speed automatic and the new 3.6-liter Pentastar V-6 producing 283 horsepower attached to a 6-speed automatic. Although the 200 is scheduled to hit the show rooms later this year, Chrysler would only provide teaser photos (see above).

The 200 will be vying for attention in one of the hottest segments of the market and its chief rivals include cars such as the Ford Fusion, Chevy Malibu, Toyota Camry, Honda Accord and Hyundai Sonata. Those cars have set the bar rather high and the 200 will have to at least meet that standard and distinguish itself with knockout styling, a boat load of features or both.

--M.D.

Elvis, Your Ride Is Here

2010-09-19T11:36:00.000-07:00

Spotted at the Autorama, Beloit, Wis., this customized 1965 Chevy Impala.

Hey, why not?

--M.D.

Carbon Foot Prints

2010-09-18T19:23:00.000-07:00

Beloit, Wisc. -- As a prelude to one of the largest car shows in Wisconsin, the stateline community of Beloit plays host to an increasingly popular cruise night complete with a burn out pit.

Pictured is a Fox-body Mustang demonstrating a total disregard for the environment while exalting adolescent lust. Moments after this picture was snapped, so was the Mustang's engine as the driver sheepishly had to be pushed out of the pit.

The event is sponsored by the local Crime Stoppers organization as a fund raiser so no need to worry about getting a ticket.

--M.D.

The Fiesta That Never Came

2010-09-12T19:40:00.001-07:00

From the very earliest report of the U.S. version of Ford’s latest generation Fiesta, I was convinced that it would be my next car. When Ford offered early adopters the opportunity to pre-order their Fiestas before factory production had begun, I was there. I still have a copy of the build order that the salesman submitted, dated March 23.

My Fiesta was an almost fully loaded 5-door hatch, red candy metallic with cashmere leather interior. I loaded it up with nearly everything except the automatic transmission. I also skipped the power moon roof as the web site noted that it would be subject to “late availability”, and I didn’t want to wait that long.

In June I got word that the wait would be over soon. I had a buyer for my 2004 Taurus and since I could put my 2001 Miata into service as a daily driver for a week or two, I closed that deal to make room for my soon-to-be-arriving Fiesta.

Two weeks came and went, then four weeks. Still no Fiesta. But now there were other problems. Hurricane Alex wiped out rail lines that Ford was using to ship Fiestas out of the plant in Mexico. More weeks passed. Then word that Ford was shipping Fiestas by sea to Baltimore and that mine was put on a rail car there and on its way. More weeks passed and it still hadn’t arrived.

Now I was seeing photos posted on blogs of proud Fiesta owners with their new cars. I even saw one with the “late availability” moon roof. But I wasn’t seeing mine. I’d had enough. I decided to look at other options. I wanted a car that I could get as excited about as I was the Fiesta, it’s the car pictured above. Last week I pulled the trigger on my “plan B” and bought a 2011 Mustang with the new 3.7-liter V-6.

As frustrating as the process was, it turned out well. I couldn’t be happier with the Mustang.

--M.D.

There's A Difference

2010-09-06T11:53:00.000-07:00

Edgerton, Wis. -- The Rock River Thesheree is a Labor Day tradition in southern Wisconsin dating back to 1955. It is dedicated to vintage farm implements and steam power. The two machines you see pictured were both on display there. One is a tractor and the other is not.

Though commonly referred to as "steam-powered tractors", machines such as the one pictured below were actually called "traction engines" in their day. The term "tractor" didn't appear until around 1903 and is believed to have been coined by Charles W. Hart and Charles H. Parr to describe their invention, a similar farm machine powered by an internal combustion engine rather than steam. The word is said to be a combination of the words "traction" and "power".

Steam powered traction engines were in use throughout the second half of the 19th Century but were quickly supplanted by internal combustion engined tractors in the 20th Century as the newer devices were less expensive, more maneuverable and easier and safer to operate.

Whether steam powered or internal combustion, these implements changed the course of agriculture and human history. Large scale farming would not have been possible without inventions such as these.

--M.D.

Fiat: Coming to a Chrysler Dealer Near You?

2010-09-01T06:58:00.000-07:00

Fiat recently assembled a meeting of 400 Chrysler dealers to discuss plans for the upcoming introduction of the Fiat 500 to the U.S. market. Some 165 dealerships in 119 markets will be the first to offer the funky subcompact and those dealers will probably also be offered future Fiats and Alfa Romeo franchises as that brand is reintroduced to this market in coming years.

Fiat expects to expand the Fiat network to as many as 200 locations but it will concentrate on markets which it has determined are able to support sales of a hip, trendy small car. In other words, don’t expect to see Fiat 500s in rural Kansas any time soon.

The 2-door hatchback version of the 500 will be the only model offered at first, but Fiat expects to add a convertible, a high-pro Abarth version and an all-electric model later. Initially, dealers will be required to offer a small showroom (up to 3000 square feet) to showcase the 500 but may have to offer separate, stand-alone facilities in the future if they are to be chosen to sell Alfa Romeos, as well.

Fiat will begin selling the 500 late this year and hopes to find 50,000 buyers in its first year on the U.S. market.

(source: Automotive News)

--M.D.

When The Going Gets Tough, The Tough Go Shopping

2010-08-24T07:20:00.000-07:00

Volkswagen is determined to become the world's largest car maker over the next few years and part of its strategy in reaching that goal seems to be to buy up smaller car companies around the globe.

Earlier this year VW announced a link-up with Suzuki, even as it was trying to digest the Porsche merger, now VW is said to be looking at buying Alfa Romeo, currently part of the Fiat family of fine cars. Trouble is, Fiat chief Sergio Marchionne says that Alfa is not for sale. In fact, Fiat's future plans include expanding the Alfa line and the Italian company hopes to quadruple Alfa's sales by 2014, to half a million cars per year.

Would such a game plan work for VW? History would suggest that it wouldn't. Multi-brand car companies seem to go through periodic blood lettings such as GM experienced last year, so time will tell.

--M.D.

(source: Automotive News)

Not All The Cruisers Are On Woodward Avenue

2010-08-22T06:25:00.001-07:00

Eau Claire, WI -- After two days of touring the back roads of northwest Wisconsin members of Open Air Classics, a convertible owners club, relax with a public display of their steeds. The cars are parked where the Fournier Ballroom once stood, one of the last venues that Buddy Holly played before his untimely death.

--M.D.

Another Rite of Summer

2010-08-20T15:25:00.001-07:00

Eau Claire, WI -- Open Air Classics, a Wisconsin-based convertible owners club, is convening its 2010 summer tour in Eau Claire, WI, this weekend. Over 200 rag tops have descended on this fair city and include everything from the 1950s classics you see pictured to current-year Mustangs, Corvettes and Miatas, and everything and anything in between.

Activities include extensive drives throughout the area, including the beautiful coulee region along the Mississippi River and a car show on the site of the Fournier Ballroom where rock and roll legend Buddy Holly played one of his last concerts.

--M.D.

News Bits

2010-08-12T08:53:00.000-07:00

Ford To Bring V-6 Back To F-150

Ford will reintroduce V-6 engines to the F-150 pickup truck in 2011. The 3.7-liter normally aspirated V-6 and the 3.5-liter EcoBoost will both be available in addition to a 5.0-liter and a 6.2-liter V-8. Buyers of full sized pickups have overwhelmingly preferred V-8s but increased concern over fuel economy and more powerful V-6 engines may change their minds. The 3.7-liter is said to crank out 300 horsepower and return 20% better mileage. Ford hasn’t offered a V-6 in the F-150 since 2008. (Source: Automotive News)

Chevrolet Will Not Produce a Mid-engined Corvette

Apparently rumors have been circulating for a couple of years that the next generation Corvette would be mid-engined. GM is denying that any such plans are underway and also denies that it is considering putting a V-6 in their iconic sports car. A GM spokesman did, however, entertain the possibility of a hybrid power train for the Corvette, noting that automakers must continue to offer better performance and improved fuel economy. (Source: Automotive News)

Chrysler Keeps Ad, Erases Monkey

A recent ad touting Dodge’s Tent Event sale ended with a chimpanzee in a white costume setting off a mild confetti explosion. The animal rights group PETA didn’t care for it, complaining that chimps used in the entertainment industry are mistreated, and asked the automaker to pull the ad.

In a heart warming display of wit, Dodge did better than that: they kept the ad but erased the chimp so now, as the announcer notes, an invisible monkey sets off the explosion.

Gotta love it. (Source: Jalopnik.com)

--M.D.

Mecum Auctions Gets $51,000 For Vintage Tractor

2010-08-07T15:01:00.001-07:00

Mecum Auctions offered this extremely rare 1954 Farmall Super MDV TA at their Gone Farmin' auction in Walworth today. One of only 64 "high crop" versions made, fewer than 20 of these also had the diesel option. Mecum drove the bidding up to $51,000 to close the sale.

--M.D.

Mecum’s “Gone Farmin’” Vintage Tractor Auction

2010-08-06T15:39:00.001-07:00

This weekend Mecum auctions is holding its first “Gone Farmin’” vintage tractor auction in Walworth, WI. Some 200 tractors from various eras and manufacturers are going on the block. The oldest piece is a 1914 John Deere manure spreader.

This little red machine caught my eye. It’s a 1960 Porsche with a 2-cylinder, air-cooled diesel and 8-speed transmission with torque converter. Porsche built tractors from 1934 until 1963 and they are becoming increasingly popular among collectors.

Who knew?

--M.D.

July Sales : GM Surges; Toyota, Honda Tumble

2010-08-04T08:04:00.000-07:00

July sales numbers are in and U.S. domestic manufacturers all showed gains, strong gains in the case of GM, while Toyota and Honda both lost ground.

Leading the charge among major car makers, GM’s current four core brands outsold last year’s pace by 6.4 per cent, when the company had eight brands in the mix. Chrysler scored a 4 per cent gain while Ford edged up 3 per cent. (Ford’s totals for July include Volvo. Comparing Ford’s core brands, excluding Volvo, would have shown an 8 per cent increase.)

The two biggest Japanese car makers saw sales declines with Toyota off by 3.2 per cent and Honda down 2 per cent. Smaller players did better with Mazda up 8.9 per cent, and Subaru up 9.8 per cent. Suzuki’s tiny share of the U.S. market continues to evaporate as sales fell 44 per cent in July. Korean manufacturers Kia and Hyundai report combined sales and showed a 19.5 per cent increase for the month.

Most European marque posted increases last month with VW up 17.4 per cent, BMW up 10 per cent and Mercedes up 5.5 per cent.

July 2010 sales could have been a blood bath because last year’s numbers were bolstered by the “Cash for Clunkers” program which caused a large boost in sales. Toyota and Honda did take a hit, especially among their small, more fuel efficient models, although their trucks showed new strength in July. The fact that U.S. car makers did well in the face of last year’s inflated figures looks like a good sign for the home team.

--M.D.

(source: Wards Automotive)

Here We Go Again . . .

2010-07-29T15:03:00.000-07:00

Toyota is once again announcing a major recall, this time involving its top of the line Avalon. Some 373,000 Avalons, model years 2000 to 2004, are being recalled to correct a defect in the steering wheel lock which could cause the steering wheel to jam under certain conditions leading to a loss of vehicle control. Toyota will replace the steering column bracket on involved vehicles to correct the defect. Three accidents have been reported involving this defect but there were no injuries.

In a separate action, Toyota is also recalling 39,000 Lexus LX470 SUVs built between 2003 and 2007 due to a potential defect in the steering shaft. According to a Toyota press release, a snap ring on the steering shaft could become dislodged on severe suspension impacts such as pot holes. If this happens and the steering wheel is then turned to full lock, over time the shaft could become disengaged resulting in a loss of steering control. Correcting the defect involves replacing the snap ring and installing an additional part to prevent steering shaft disengagement. No accidents have been reported over this issue.

--M.D.

(Car in photograph is not subject to this recall.)

Ford Reveals 2011 Explorer

2010-07-27T07:03:00.000-07:00

The full reveal of the 2011 Ford Explorer was yesterday and it generated about as much buzz in the automotive blogosphere as anything is recent memory.

In a complete break from the past, the 2011 version will ride on a unibody platform which it shares with Ford’s Flex, Edge and Taurus. The new Explorer will come with improved safety systems including pretensioners for front seat belts and industry-first inflatable rear seat belts. Its four-wheel drive system includes a new “terrain management system” and roll stability control. Properly equipped, a V-6 Explorer can tow up to 5000 pounds.

Being a Ford, the new Explorer will offer leading edge in-cabin electronic features such as MyFord Touch™ driver connect technology and SYNC® integrated communications and entertainment system.

Two engines will be offered, a 3.5-liter 290hp V-6 or Ford’s new 2.0-liter 237hp Ecoboost I-4. The I-4 is available with front-wheel drive only, the V-6 can be had with front- or four-wheel drive. A six-speed transmission is standard across the board. Pricing hasn’t been announced but the I-4 Ecoboost will be an extra-cost option over the V-6. With either engine, fuel economy should be considerably better than the current model.

So is the Explorer still an SUV or is it a cross-over? There are no hard and fast definitions for either of these categories and there is a fine and blurry line between them. Some people would insist that SUVs are truck-based and cross overs are car-based but this isn’t chiseled in stone.

The new Explorer is car-based so its off-road capabilities will be somewhat limited and some have criticized it for that. At the risk of overstating the obvious, Explorer owners rarely venture any further off the road than their back yards and if you are a serious off-roader you would be considering a number of other vehicles over the Explorer.

Ford (arguably) invented the SUV when it introduced the first Explorer some 20 years ago. It has now reinvented the Explorer, if not the segment, for the new realities of the future. Fuel economy and creature comforts and features are now far more important to buyers than before and the new Explorer should meet those new expectations handily.

Production begins late this year and the new Explorer should begin appearing in showrooms early next year.

--M.D.

Miatas Invade Springfield, IL

2010-07-25T06:33:00.000-07:00

Springfield, Ill. -- The car club cruise has become an annual rite of summer and one of the most "clubbed" cars out there is the Mazda Miata. This weekend three midwest Miata clubs, The Badgerland Miata Club from Wisconsin and the Abe Lincoln and Windy City clubs from Illinois, joined forces and descended on Springfield, Illinois, for their "Three Of Clubs" cruise. (They were joined by at least one outsider from the St. Louis Gateway club so technically it was the "Four of Clubs".)

Pictured is a small slice of participants getting ready to head out to tour historic Lincoln sites including his tomb (pictured) and the recreated village of New Salem where our 16th president spent some of his formative years.

--M.D.

VW To Go Electric After All

2010-07-20T08:09:00.000-07:00

Back in February I reported that Volkswagen of America President Stefan Jacoby downplayed the importance of electric and hybrid drive trains in Volkswagen’s future product development. Well, Jacoby is now gone and VW chief Martin Winterkorn says VW will, indeed, become a player in both electric and hybrid platforms.

A Toureg hybrid is already in production and a Jetta hybrid will hit the streets in 2012. Hybrid versions of the Passat and Golf are also planned. Electric versions of the Golf and VW’s new Up! are being planned, as well, and at least one of them will sold in the U.S.

Volkswagen continues to insist that it wants to become the world’s largest car maker by 2018. Europe is already nailed down and the company is very strong in China and, through its partnership with Suzuki, India, too. The U.S. remains a tough nut for VW to crack, though. At one time the company practically owned the import segment in this country, but the Japanese invasion devastated its market share and today it ranks in the same league as Mazda or BMW. Respectable enough but far below its peak some forty years ago.

A newly redesigned Jetta may help, as might the new mid-size car that will come out of VW’s brand new plant in Chattanooga, TN. However, new challenges will keep coming. Premium car makers such as BMW and Mercedes are moving down market with smaller offerings while the Koreans continue to boost their share with higher quality and better looking models.

--M.D.

Car Buyers Going Smaller

2010-07-13T06:48:00.000-07:00

When gasoline prices started their upward march in 2008 and with the subsequent recession, car buyers shifted their focus from large vehicles and trucks to smaller cars, beginning a trend that has continued into 2010.

Full-size pickups such as the Ford F-150 and Chevy Silverado still top the sales charts but, overall, when large SUVs, vans and trucks are added together, their market share has dropped almost 10 full points over the past three years. Smaller, more economical SUVs and crossovers have gained considerably during that same time frame.

Buyers are also demonstrating more pedestrian tastes as they favor more common models over fancier ones. Mercedes buyers, for example, tend to be looking at that car maker’s C class line more so than the E or S models. Similarly, more ordinary sporty cars such as Ford’s Mustang and Chevy’s Camaro have seen market share rise as upper end models have lost share.

Buyers don’t seem willing to give up features as they move downward in the product lines. While they may be buying smaller, less extravagant models, they are loading them up with high-end features, some of which weren’t available on any cars just a few years ago. As a result, transaction prices are actually rising.

Will the trend last? Buyers seem to be exhibiting a “won’t be fooled again” mentality here. They know that while gasoline prices have come down from the peaks of 2008, the future holds no guarantee and we could, and probably will, see such prices again, sooner rather than later.

--M.D.

(source: Automotive News)

"That's What I'm Talkin' About"

2010-07-11T12:52:00.000-07:00

Blanchardville, WI -- This quiet little southwestern Wisconsin town (pop. about 800) hosted its 24th annual Cruisin' Wisconsin car show today. In addition to swelling the town to several times its normal size, the event fills its one park with hundreds of cool cars, including these particularly wacky entries.

Last Mile for PT Cruiser

2010-07-09T10:09:00.000-07:00

After a decade-long production run, the last Chrysler PT Cruiser rolls of the line in Mexico today. One of the most recognizable automobiles on the road, the PT Cruiser has sold nearly 1.5 million copies worldwide since its introduction at the Detroit car show in 1999.

Ten years ago retro-styled vehicles were a minor fad as cars such as the New Beetle, Ford’s resurrected Thunderbird and the PT Cruiser hit the streets. Chrysler’s offering was by far the most popular of the lot, owing to its low price and useful, roomy interior.

The PT Cruiser was preceded by the Plymouth Pronto concept car, a design exercise intended to maximize interior space in a tidy, compact footprint. Chrysler took the interior packaging of the Pronto, added unique retro styling and began selling it as a Chrysler in the fall of 1999. Interestingly, the PT Cruiser is officially designated as a truck, not a car.

The PT Cruiser spawned a sizeable cottage industry of customizers and Chrysler itself offered a two-door convertible and a wide variety of custom packages for the car -- er, truck.

The Toluca, Mexico, factory that built the PT Cruiser will now be converted for production of the Fiat 500 which will be introduced to the North American market later this year.

--M.D.

Fiat 500 Dealers To Be Selected This Summer

2010-07-06T07:25:00.001-07:00

Chrysler announced yesterday that it would soon begin the process of selecting the dealers which will be allowed to sell the Fiat 500 later this year. Chrysler is considering dealers in approximately 125 markets in 41 states that it has targeted as being appropriate for the reintroduction of the Fiat brand and in which the company sees adequate growth potential in the subcompact segment. The selection process is expected to continue throughout the summer with final decisions to be announced at a press event in September.

Selected dealers will receive application packets from the auto maker and will have to demonstrate adequate capitalization, customer service metrics and sales performance, among other parameters. Dealers also must agree to establish separate showroom and service facilities and separate sales and services staffs.

Memories of Fiat’s earlier foray into the U.S. market linger and the company seems aware that it will have to work hard to convince buyers that its products meet today’s high standards of quality and performance. Given its plans to bring more Fiat-sourced products to the U.S., Chrysler and Fiat absolutely have to get this one right.

--M.D.

June Sales: Pace is Slowing

2010-07-06T06:42:00.000-07:00

Auto sales figures for the month of June are in and, while most manufacturers are still posting gains and while there are some surprising bright spots, the pace appears to be slowing and some analysts believe the market may be hitting a new, lower set point.

The biggest surprise was Chrysler’s 36% jump over June of 2009. Large increases in fleet sales may account for the huge boost, though a break out of those figures is not currently available. Also, last year Chrysler was still reeling from some of its worst sales figures in fifty years. Whatever the reason, up is always better than down and the company outperformed the market by a wide margin. Ford showed the second largest increase with a 14% gain and GM came in third, up 12%.

Among the Japanese makes, Mazda did best with a 33% increase followed by Subaru at 16% and Nissan at 11%. Toyota and Honda both are off the industry pace, showing increases of 6.8% and 6.2%, respectively, and both saw market share decline once again in June.

Korean makes Hyundai and Kia are reported together and posted a strong 28% gain and grew market share by almost a full percentage point, as well.

Overall, U.S. sales were up 14.4% over June of 2009, a respectable figure but below the faster pace the market had been showing earlier this year. Two possible explanations are offered: either the recovery is slackening (or worse, headed for a double-dip) or auto sales are returning to a lower “normal” annual rate far below the 16-17 million unit pace it was hitting just a few years ago.

--M.D.

Rare Roadster Spotted at Illinois Car Show

2010-06-27T19:19:00.001-07:00

This attractive little roadster was spotted at the Bloomington Gold Survivor Car Show in St. Charles, IL, this weekend. It's a 1959 Elva Courier, built by the British racing car manufacturer, Elva (as in elle va -- French for "she goes").

About 500 of these were built between 1958 and 1969 and while they were intended for the road, they often found their way to track events, as well. This one bears a dash plaque from the 1958 Road America race season and the signature of Frank Nichols, founder of Elva.

--M.D.

Mazda2 Ready to Join the Fray

2010-06-26T08:55:00.000-07:00

Mazda will introduce its B-segment Mazda2 to the U.S. market this August, joining an increasingly crowded subcompact field and hot on the heals of Ford’s similar Fiesta.

Mazda’s entry in this class will feature a 100-horsepower, 1.5-liter I-4 engine with either a 4-speed automatic or a 5-speed manual. In keeping with Mazda’s goal of “adding lightness” to its cars, the Mazda2 weighs in at a svelte 2300 pounds making it (just barely) one of the lightest cars in its class. The combination of older engine and transmission designs yields a very good, but not class-leading, fuel economy rating of 29city/35highway (manual) or 27/33 (automatic). As with the rest of its line, Mazda will be touting performance over fuel economy.

Comparisons with the Ford Fiesta are inevitable but the Mazda2 is aimed at a slightly different buyer than Ford is shooting for. Its lighter weight should make it a little more entertaining to drive, even if the Fiesta’s more modern engine and automatic transmission turn in better gas mileage. The Mazda2 will also be marketed in a narrower range of pricing levels. The base model will be closer to the Fiesta SE in content and price, but with fewer high-tech options available -- and no leather option -- it will top out considerably cheaper than the most expensive Fiesta.

American buyers have not always embraced cars this small but the choices available today are more attractive than in the past and interest in fuel economy is stronger than before. Keep your eye on this one.

--M.D.

Truck Sales Accelerate; U.S. Economy to Follow?

2010-06-15T07:57:00.000-07:00

The Detroit News reports that year-to-date truck sales are racing along with renewed vigor so far and that could be good news for the overall economy.

Buyers snapped up 151,000 new trucks in May, a 19% increase over last year. Ford was again the big winner with substantional gains in both their F-150 and newly redesigned Super Duty lines, though Chevy and Ram are also posting increases.

Some of the increase seems to come from long-delayed vehicle replacement on the part of contractors and other commercial buyers. A lagging economy and weak credit market caused many of them to keep trucks in their fleets longer and the strong sales so far this year are taken as a sign of confidence that the economy is on a growth trend.

--M.D.

Residual Value on the Rise for Ford and GM

2010-06-09T07:00:00.000-07:00

One measure of the health of an auto maker is the residual value, or resale value, of its cars after 3 years. Higher values indicate greater buyer confidence in a manufacturers products.

Automotive Lease Guide analyzes residual values at the 36 month mark and says that Ford and GM have improved considerably over the past five years. In 2005 values for the U.S. brands typically were less than 40% after 36 months while today Ford branded passenger cars are showing 48.8% with Chevrolet at 42.5%. Japanese makes still top the charts with Mazda at 54.1%, Subaru at 54%, Honda at 53.7% and Toyota at 51%.

Residual value can be affected by a number of factors, most of which are within a car maker’s ability to control. In the past, Detroit typically would keep factories humming at full capacity and then offer large sales incentives to retail customers and/or shuttle excess production off to rental fleets, both of which reduce the resale value. These days they try to match production more closely to demand, instead.

Overall confidence in a company’s products can also boost value. Ford is riding high in public opinion as the quality of its cars improves and it continues introducing interesting new models. The fact that it did not seek Federal bailout money probably helps, as well.

Toyota’s residual value figures have remained flat over the past five years. Analysts believe that this has more to do with the recall crises that the company has endured than the unusually generous incentives that it has been offering recently.

--M.D.

(source: Automotive News)

May Auto Sales Continue Upward Trend

2010-06-06T07:04:00.000-07:00

May auto sales numbers are in and, overall, the industry’s recovery is now in its sixth month.

Among domestic manufacturers, Chrysler posted the largest percentage gain, boosting sales by 32.8%, mostly among Dodge brand vehicles. (It should be noted, however, that Chrysler’s fleet sales have risen dramatically over the past few months.) Ford was next with a 22.2% gain and GM was up 17.5%.

Most Asian brands that sell in the U.S. also posted gains in May. The notable exception was Suzuki which continues losing ground in a growth market with a 26% drop in sales. The greatest gains came from Mazda and Subaru with 35.2% each, followed by Isuzu at 32.3%, Hyundai Group (which includes Kia) at 27.7% and Nissan at 24.1%. Honda sales jumped 19.1% and Toyota trailed the rest of the pack with a mere 6.7% increase. Perhaps more significant for Toyota is the bad news that its market share dropped again from 16.5% down to 14.8%.

European brands were a mixed bag with Daimler (+22%) and Volkswagen (+21%) posting increases and BMW (-3.9%), Porsche (-5.4%) and Saab (-77.8%!) showing declines.

Overall, the U.S. market was up 19.2%, continuing a trend that appears to have begun last December. This summer car makers will be up against sales figures from last year’s “Cash For Clunkers” program which caused a significant blip in sales but which also produced a big dip in the charts when it was over.

Lincoln Rises After Mercury Falls

2010-06-03T05:29:00.000-07:00

Ford made it official yesterday -- Mercury will be gone by the end of the year. The car maker will be working closely with dealers to make the transition as smooth as possible and, as there are no free-standing Mercury-only dealerships, no one will be left completely out of the game.

The lemonade to come out of this lemon was the announcement that Ford will expand Lincoln's presence with "seven all new or or significantly refreshed vehicles in the next four years". We already know about the updated MKX, due out any time now, and the addition of a hybrid version of the MKZ later this year. Most intriguing was the announcement that the brand will field an all-new C-segment vehicle that will be unique to Lincoln.

You may remember the Lincoln Concept C from last year's car shows (see above). The "C" stands for C-segment which means that the new car will be based on the new Focus global platform. That could mean a funky little sedan such as the concept car (hey, Nissan would do it), but it could also mean a minivan, crossover or small SUV as all of these body styles will be developed from the Focus platform for various markets around the world. Here's a suggestion: How about a hot little sporty coupe? (But , please, don't call it MKC!)

Furthermore, EcoBoost technology will become available on every Lincoln model, including the new C-segment offering. Ford also promises that Lincoln will be become the segment leader in high-tech comfort and convenience features -- i.e. MyLincoln integrated touch controls, Sync, etc.

A significant number of Mercury customers were loyal Ford people anyway, so it's safe to assume that most of them will stick with the company through this. One does have to wonder, though, what Grand Marquis buyers are going to do. I'll say it again, GM may want to keep the Buick Lucerne around to win some of these customers over.

Mercury About to Crash

2010-05-29T06:07:00.000-07:00

Back in November I posted comments regarding the rumors that Ford was considering axing the Mercury division. I closed with these words: “If you see a Taurus-based Mercury concept car or a cross-over or SUV [at the upcoming car shows], it might stick around a while. Otherwise: not with a bang but a whimper.”

Well, the car shows came and went without anything new from Mercury, no concept car, no new crossover -- nothing. Most significantly, there was no indication that Ford would offer a Taurus-based sedan or SUV from its mid-level brand. Back in January Ford chief Mullaly did tease us with the promise of a Mercury version of the redesigned Focus but it seems that won’t happen.

Reuters is reporting that Ford is making plans to discontinue the Mercury brand and will be talking with its dealers about it as early as this summer. Dealers apparently have been waiting for this shoe to drop for some time and don’t seem too concerned. All of them have either Lincoln or Ford franchises (or both) so will still have cars to sell. And Ford could round out the Lincoln line-up with its own version of the Escape to replace the Mariner.

Losing the Grand Marquis may be the most difficult pill to swallow as there just isn’t another car quite like it on the market. It is a lot of car for the money and is a favorite among middle-American retirees. (Buick may want to keep the Lucerne around just for these folks.) The Grand Marquis, of course, was going away in 2011, anyway.

Analysts have been saying for years that GM and Ford would need to shed some of their brands to remain competitive and Mercury was having a harder and harder time defining itself and finding a market. In fact, sales are only about one-fifth the volume that they were 20 years ago. Time to move on.

--M.D.

Buick Regal Driven

2010-05-26T15:05:00.000-07:00

Buick’s Regal will be hitting showrooms any minute now and GM is introducing the car to the press at events all over the country. Like the new LaCrosse, the Regal is built off the Opel Insignia platform and initially will be offered in only one trim level -- GXL -- and with one engine -- a 2.4-liter DOHC Ecotec I-4 producing 184 horsepower. Prices start at 26,995 including destination charge.

The standard I-4 produces adequate power and is relatively smooth but buyers interested in performance may want to wait until the 220 horsepower 2.0-liter direct injection turbocharged I-4 becomes available later in the year. Engine noise and vibration are well isolated and only become apparent under hard acceleration. The ride is smooth enough but road noise is more noticeable than one might expect.

Not so smooth is the 6-speed automatic transmission. Shifts weren’t particularly harsh but they were not unobtrusive and the transmission seemed to have a hard time finding the right gear under some circumstances such as accelerating up hills. The transmission can be shifted manually for drivers who think they can do it better themselves. Brakes were effective but the pedal felt surprisingly spongy.

The interior is nicely done, if a bit “blingy”, with very supportive seats and decent quality materials on most surfaces. Controls are well laid out but you will want to spend some time studying the array of center stack buttons and knobs before you hit the road. And turn up the stereo a bit if you want to tune out the minor squeaks that the interior produces, especially over rough roads.

The Regal is attractive enough, nicely complements the new LaCrosse and should compete effectively in its class, especially if some of the minor imperfections are ironed out.

--M.D.

Tucker Convertible Restored, For Sale

2010-05-24T15:16:00.000-07:00

A recently restored Tucker convertible, the only one in existence, is being offered for sale by Benchmark Classics, a classic car restoration shop in Middleton, WI.

The car has generated considerable controversy and the Tucker Automobile Club of America is not convinced that the car is authentic. The club maintains that no Tucker Corporation records have ever been produced to prove that the company ever built a convertible version of the car. The club does admit that the convertible is built from “many authentic Tucker parts” and that it probably represents “what a Tucker convertible would have looked like had one been produced”.

Justin Cole, president of Benchmark Classics, maintains that the convertible was a secret project undertaken in the waning days of the company and that Preston Tucker purposely kept no records of it. He also has documents, including sworn affidavits, supporting this position.

According to Cole and the car’s previous owner, Tucker employees began the conversion by removing the doors from a standard Tucker and cutting off the top and center posts. It was then sent to Lencki Engineering where the frame was reinforced but little work was done on the car after that as Tucker was now out of business and Preston Tucker was facing a grand jury investigation.

Many of the convertible’s body parts were stamped with the number “57” which would indicate that the car was body shell 57 in the series of 58 that were manufactured before the factory shut down. A 1949 photograph taken by a Life magazine photographer does show that one body shell is missing from a line of 8 such bodies that were left in the factory and, if the cars were arranged in their numerical order, the missing car would have been number 57. However, many Tucker experts believe that the missing car was being modified by designer Alex Tremulis into a 1949 prototype and not into a convertible.

Authentic or not, the car is stunningly beautiful and will, no doubt, become something of a legend within classic car circles.

--M.D.

Whiteacre Ads: Republicans Scoff, Public Buys It

2010-05-14T09:13:00.000-07:00

Last month, in a barrage of television ads, GM chief Ed Whiteacre bragged that his company had paid off it loans to the U.S. government five years ahead of schedule.

Republicans, including Wisconsin’s Paul Ryan, said, “Not so fast.” They maintain that GM used TARP money (which they also received from the feds, of course), to repay those loans and that the taxpayers are still on the hook for a big piece of the corporation.

And they have a point.

GM’s health may be improving but it still isn’t generating the kind of profit it would take to pay off the loans. Those funds did, indeed, come from the other pot of money that the feds handed the company last year.

But as far as the public perception of the company, such inconvenient truths don’t seem to matter. A London-based public opinion firm says that their polling shows public opinion of the automaker has improved since the Whiteacre ads aired and now rates higher than the once golden Toyota (which, of course, is suffering as a result of the recall crises).

Who said you can’t fool all of the people all of the time?

--M.D.

(Source: Automotive News)

Toyota Profits Beat Projections

2010-05-11T07:11:00.000-07:00

Toyota published its fiscal year results and for 2009 it is reporting a profit of $2.3 billion, beating all projections, including its own. This stands in sharp contrast to 2008 when the company posted an operating loss more than twice that large. The company spent heavily in recall repairs and incentives but also managed to cut costs sufficiently to improve its bottom line.

Total sales started to rebound in 2010 but not enough to offset declines last year and the car maker reported consolidated sales of 7.24 million units, a 4% drop from 2008. The company is cautiously projecting a modest increase in sales for the current fiscal year with a commensurate increase in net profits.

Meanwhile, Toyota’s recall woes continue as the National Highway Traffic Safety Administration investigates whether the company reported a 2005 steering problem in a timely fashion as required by law. One bit of good news came last week as Consumer Reports removed its “Don’t Buy” warning from the Lexus GX 450 after retesting the vehicle following Toyota’s fix for the problem.

--M.D.

Pressure’s On For Honda

2010-05-06T06:23:00.000-07:00

An interesting bit of data buried in the April auto sales statistics was Honda’s tepid 13% improvement over April of 2009. Up is always better than down, but Honda is underperforming the market right now and its leaders are concerned, according to Automotive News.

With U.S. car makers lavishing more attention on their passenger cars (i.e. Fusion, Taurus, Malibu, LaCrosse, Regal, et al) and with Korean manufacturers Hyundai and Kia continuing to draw attention away from Japanese brands, Honda faces an increasingly competitive playing field. Whether it can join the rebound party many of its competitors are enjoying is another question.

Things should be better for Honda right now with overall car sales surging and its chief rival, Toyota, mired in recall problems. Yet Honda’s market share is heading in the wrong direction. While Nissan, Ford, GM and VW are seeing gains in share, Honda is slipping, from 12.4% in the first four months of 2009 to 11.6% in 2010 (Wards Automotive data).

Obviously, Honda isn’t going away. It still has 3 models in the top 10 (Accord, Civic and CR-X) and has improved its profitability. (And it should be noted that Honda has the stingiest incentives of any top-tier car maker.) So its situation is cause for concern, not alarm, but the company will have to work harder to achieve the 14% fiscal year increase it is projecting.

--M.D.

April Auto Sales Surprise: Chrysler Has a Pulse

2010-05-04T07:45:00.000-07:00

April sales numbers are in and the automobile market continues a pattern of growth that began in December. Overall sales were up 20% with every major car maker posting an increase. Only Suzuki

(-23%) and Porsche (-6%) saw declines.

The largest increases were posted by minor players Subaru (+48%), VW (+39%) and Maserati (+74%). Nissan led among the major manufacturers with a 35% increase followed by Ford at 25%, Hyundai and Toyota at 24% and Honda at 13%. GM managed to show a 7% increase over last year but when just its current core brands are compared, the increase is a more respectable 20%.

The big surprise was Chrysler which finally was able to report an increase, up 25% over April of 2009. Interestingly, Chrysler’s older platforms, the much maligned Avenger and Sebring, recorded the biggest increases while its recently redesigned and well received Ram pick-up continues to struggle.

While April sales were at a slightly slower annualized rate vs. March, the market obviously is turning around and nearly every manufacturer is sharing in the spoils. At an annual rate of 11.3 million units, the market is still well below its all-time high of a few years ago, but does seem to be on a sustainable growth trend.

--M.D.

Source: Automotive News

New Grand Cherokee Ready for Launch

2010-05-01T06:33:00.000-07:00

A completely redesigned Grand Cherokee, Chrysler’s first new product since last year’s acquisition by Fiat, will begin production this month and arrive in show rooms in June, according to The Detroit News. The updated styling retains the vehicle's distinctive looks but is said to be all new from stem to stern.

The Grand Cherokee will still be built in Chrysler’s Jefferson North plant in Detroit but Fiat has installed new production systems which promise to dramatically improve the quality of the vehicles. CEO Sergio Marchionne says that the new Grand Cherokee will boast a level of quality that “is unprecedented in the history of the place”.

The new Grand Cherokee will be the first to offer Chrysler’s new Pentastar V-6, a brand new family of engines said to be more powerful, more efficient and produce lower emissions that the company’s current engine line-up. The vehicle will also sport more advanced suspension and four-wheel-drive systems.

As the first new vehicle since last year’s reorganization, there is a lot riding on the Grand Cherokee and some are faulting Chrysler and Fiat for not doing more to build excitement ahead of its introduction. Marchionne’s strategy seems to be to play his cards close to his vest, which is all well and good but he has to get this one right -- and he knows it.

--M.D.

Analyst Doubts Chrysler’s Viability

2010-04-18T11:36:00.000-07:00

A business analyst for London’s Bernstein Research has issued a report in which he expresses considerable doubt about the future of Chrysler and his belief that the company probably cannot survive as it is currently structured.

According to Automotive News, the report congratulates CEO Sergio Marchionne for cutting costs and restoring some measure of profitability to the beleagured car maker but doesn’t see enough product development or enough “synergy” between Fiat and Chrysler to effect a complete turnaround. It also cites Chrysler’s weak product line-up as a significant impediment and finds Marchionne’s sales and market share projections unrealistically optimistic.

What would it take for the company to survive? The analyst believes that Marchionne’s best shot would be to strip the company down to just Ram trucks and Jeep and devote the remaining resources to production of Fiat products. That would mean, of course, that the Dodge and Chrysler brands would be gone and even if it meant the survival of the company as a whole, the loss of those marques would be a blow.

--M.D.

Mazda Thinks Different

2010-04-13T06:09:00.000-07:00

If you’re going to succeed as one of the U.S. market’s smaller car makers it helps to be scrappy and innovative. Think Subaru with its standard all-wheel-drive and boxer engines. Think Volkswagen and its German engineering and cheeky advertising. Think Mazda and its . . . diesel engines??

The Detroit News tells us that the company that brought us Zoom Zoom is planning on bringing us a mid-size diesel sedan in 2012. The move is obviously aimed at helping the company meet increasingly stringent fuel economy standards here and by using diesel technology it will be able to do that without the high cost of hybrid drive trains.

Mazda engineers have reworked diesel compression ratios to meet emission standards without the use of complicated downstream treatment systems. A Mazda spokesperson also maintains that this technology gives their diesel performance advantages over their only U.S. competitor, Volkswagen.

Will Americans buy it? Most automakers don’t think diesel passenger cars would sell in sufficient numbers here. There is increasing interest in oil burners, however, with BMW and Audi both bringing modern diesels to this market. Volkswagen, of course, has successfully been selling low-cost diesels cars here for years. By not following the crowd, Mazda has managed to carve out its own unique market niche. I’m betting that it can make this work.

--M.D.

U.S. Automobile Fleet Shrinks

2010-04-08T07:10:00.000-07:00

During a fifteen month period from July 2008 through September 2009, Americans junked more cars than they bought and analysts suggest that this may be a good sign for new car sales. According to Automotive News, which cites data from R.L. Polk, nearly 15 million cars and light-duty trucks were sent to scrap yards during that period, while consumers bought only 13.6 million new vehicles to replace them.

Last year’s “Cash For Clunkers” program no doubt contributed to this phenomenon since qualifying trade-ins were sent straight to the crusher rather than making at least one more pass through the ownership cycle. Another trend noted in the report is that Americans are hanging onto their cars longer than in the past, due in part to uncertainties about the economy and in part to more reliable cars with longer useful life spans.

Meanwhile, the U.S. population continues to grow as does the pool of drivers, all of which points to strong pent up demand which should be good for future car sales.

--M.D.

Top Selling Vehicles in March -- Few Surprises

2010-04-04T19:49:00.000-07:00

Analysts have sliced and diced the data from March auto sales and the top 20 list looks much as it did before.

The Ford F-150 remains safely ensconced in the number one position, where it has stayed for . . . well, for as long as anyone can remember. Ford delivered over 42,000 of them in March and just over 103,000 units so far this year. The Toyota Camry is a distant second with just over 36,000 sold and the Chevrolet Silverado pick-up takes third place honors with just under 30,000 sold.

Toyota placed four other models in the top 20, with the Corolla in fourth place, the RAV4 in sixth, and the Highlander and Prius in 19th and 20th places respectively. Ford had three other models in the top 20, the Fusion at number 8, the Focus at 10th and the Escape coming in 11th.

Chevrolet also holds three more top 20 positions: the Malibu at 14th, the Impala at 15th and the Equinox rising to 18th, posting nearly a 200% increase in sales.

Chrysler’s only model to make the top 20 list is the Ram pick-up in 13th place. Interestingly, and perhaps worrisome, the Ram was the only top 20 vehicle to post a sales decline from March of 2009. In fact, the Ram’s year-to-date sales are down over 18%. This despite the fact that the Ram has received good reviews from nearly every quarter and may be Chrysler’s most segment-competitive vehicle.

--M.D.

March Car Sales Continue to Surge

2010-04-02T07:18:00.000-07:00

March car sales figures are in and overall the market grew 24% versus March of 2009, continuing a growth pattern that began in December.

Ford, Toyota and Nissan posted some of the largest gains, up 40%, 41% and 43%, respectively but Subaru was the biggest winner among main-stream car makers with a 46% increase, though at just under 24,000 units the company remains a minor player. Volkswagen saw its sales rise by 39% to nearly 31,000.

With a noticeable gap in the data, the next tier of car makers lies in the 20% range with Honda gaining 23%, GM up 21% and Hyundai and Daimler up 19%. Mitsubishi trailed these slightly with an increase of 18%.

Only two major companies saw sales decline in March. Chrysler continues to struggle in the marketplace and saw its sale fall 8% from the dismal figures of March 2009 while Suzuki was slammed with a breathtaking 72% decline, a worse showing than even Saturn which is out of business.

Analysts attribute the strong showing to an incentives war that has Toyota offering unprecedented deals to help shake its recall woes and other major car makers, notably Detroit, following suit. Still, if you don’t have cars that customers want, incentives, no matter how generous, won’t do much good. Just ask Chrysler and Suzuki.

--M.D.

Chevrolet Moves Small Cars Upmarket

2010-03-30T07:55:00.000-07:00

As Chevy brings out its new line of small cars over the next two years, it will also move them upmarket a bit by adding additional content that is now optional, according to Automotive News.

The Chevrolet Cruze, which replaces the current Cobalt, will add features such as air conditioning and power windows which cost extra on the Cobalt. The smaller Aveo will also include a wider range of standard equipment than the current version and will boast sportier styling and handling, as well. The new Spark, which hits the market in 2012, will be GM’s smallest and least expensive offering in the U.S.

Chevy’s old rival, Ford, has made headlines with its soon-to-be-released Fiesta and the upcoming Focus replacement, both of which promise to be faithful reproductions of their highly praised and high-content European counterparts. Chevy appears ready to meet this challenge head on with its own small car offerings and will up the ante by adding the tiny Spark as a bargain priced mini-car at the bottom of the line up.

Will the strategy resonate with buyers? Probably so. Fuel economy concerns seem to be moving buyers into smaller cars but those buyers won’t want to give up features and comfort to which they have become accustomed. And they seem to be willing to pay a bit more. Stripped down price leaders such as the Nissan Versa Base aren’t exactly setting the market ablaze, particularly when reliable, late model used cars can be had for the same money.

--M.D.

Fiat to Grab 35% of Chrysler in Two Years

2010-03-27T19:02:00.001-07:00

At a press conference in Turin, Italy, last week, Fiat chief Sergio Marchionne vowed that the Italian car maker will increase its stake in struggling Chrysler from the current 20% to 35% within 24 months.

Fiat was given its initial 20% stake essentially for free and can up the ante in 5% increments by fulfilling certain conditions such as bringing production of new fuel-efficient technologies to the U.S. (MultiAir engines in Michigan: check) and building a new small car here. Fiat will also be expected to expand distribution of U.S.-made products in foreign markets.

So far Fiat’s labors have produced Powerpoints and press conferences but little else to boost Chrysler’s sagging fortunes. Interestingly, though, the Detroit Free Press quotes Marchionne as saying that “[t]he most important thing is that Chrysler is proceeding on a turnaround plan; the results are good.”

So there.

--M.D.

April Fools Day Comes Early at GM

2010-03-25T08:39:00.000-07:00

Or perhaps GM is serious about the EN-V* concept it unveiled this week. Developed for the World Expo 2010 in Shanghai by GM and its partner, Shanghai Automotive Industry Corp. Group (SAIC), the EN-V is said to address “the need for personal mobility through a radical change in personal urban transportation”.

The EN-V is powered by an electric motor driving its two drive wheels and can carry two passengers and small amount of cargo. Range is said to be about 40km and integrated GPS technology allows the vehicle to be driven manually or “autonomously”. Sensors on the vehicle permit it to avoid obstacles and collisions with other vehicles.

At just under five feet long, it is about one-third the size of traditional cars and weighs about 1000 pounds. GM says that given its size and manueverability, a typical parking lot could accommodate five times more EN-Vs than traditional cars. The EN-V is supposed to solve transportation problems in crowded urban environments now and into the future, addressing issues such as congestion, air quality, parking and affordability.

At least it beats walking. Or does it?

--M.D.

* Not to be confused with Chrysler’s defunct electric program ENVI.

Green Cars Need To Offer More Than Just Fuel Cost Savings

2010-03-24T09:12:00.000-07:00

Ward’s Automotive reports that a new study by Accenture finds that while potential buyers are expressing a strong interest in hybrids and electric vehicles, those vehicles will have to bring more to the table than just great fuel economy.

Some 65% of those surveyed said that a green car would have to also offer top notch performance, reliability and affordability in order to persuade them to lay their cash on the hood. Interestingly, a majority of those responding said they would not be willing to pay more for a green vehicle such as a hybrid or an electric. Given that most hybrids cost somewhat more than comparable gasoline cars and that plug-in hybrids and electrics are likely to cost considerably more, these technologies may not catch on as quickly as some would hope.

--M.D.

March Car Sales Start Strong

2010-03-21T09:23:00.000-07:00

The Detroit Free Press reports that car sales for the month of March are continuing the momentum they showed in February -- and then some. So far, car sales this month are running at an annual rate of between 12.1 million (J.D. Powers) and 13.2 million (Edmunds) units. The last time sales were this high was last August during the government’s “Cash for Clunkers” program.

Generous incentives from nearly every car maker are driving the increase to some extent but pent-up demand no doubt accounts for much of it, too. As strong as sales were in February, they would have been even higher were it not for uncommonly miserable weather that shut down the east coast several times.

Once again, the big winner appears to be Ford which posted a breath taking 43% increase in February. TrueCar estimates that Ford will make substantial gains in market share in March, much of it at the expense of GM, Chrysler and Toyota.

Can it last? Some suggest that once the incentives expire, sales will fall back to the miasmic levels of last year. That line of thought ignores the pent-up-demand factor that is also driving sales right now. Also, a number of manufacturers are pumping up the excitement with fresh and interesting new products which could keep buyers coming.

Besides, car makers have the option of keeping incentives in place and riding the wave into summer when sales are traditionally stronger. I’m betting that they are prepared to do so.

--M.D.

The Cadillac of RVs?

2010-03-16T20:35:00.001-07:00

On a recent visit to the RV/MH Hall of Fame in Elkhart, Indiana, I spotted this one-of-a-kind motor home sitting in a corner. This flashy beast is the Star Streak II, the brain child of Paul Jones of Cape Coral, Florida, and was actually the second of two that he built. It combines the chassis from a 1976 Cadillac Eldorado with a 455 cid engine from an Oldsmobile Toronado and lots of creative sheet metal work. At 270 inches long and 83 inches tall, it was designed to fit in most standard garages.

As practical as it is tasteful.

--M.D.

Buick Shows Off 2011 Regal

2010-03-11T14:31:00.001-08:00

Craig Bierley, product marketing director for Buick, introduced a group of journalists to the 2011 Regal today. Built on the same platform as the European Opel Insignia, the Regal will be built in Germany at first but production shifts to a GM plant in Oshawa, Ontario, early next year.

Two engines will be offered, a base 2.4-liter I-4 producing 182 horsepower and a 2-liter turbocharged I-4 rated at 220 horsepower. Both get a 6-speed automatic though the turbo engine will offer a 6-speed manual at a later date. The turbo version of the Regal will also be available with a new Interactive Drive Control System featuring driver-selectable suspension settings and automatic driver suspension setting adaptability. Bierley said that on-board yaw sensors will be able to monitor driver inputs and adjust settings on the fly.

“Make no mistake,” he noted, “this is a true European sports sedan.”

All Regals will include four-wheel disc brakes with four-channel anti-lock braking system, brake assist and electronic parking brake, StabiliTrak stability control system and full-function traction control and standard dual-stage frontal air bags and side-curtain air bags.

The Regal, and to some extent the LaCrosse, move Buick in a new direction and away from its traditional buyers. Bierley said that one-third of LaCrosse buyers are under 55 and it is likely that the Regal will skew the demographics younger still. Even so, Bierley said that dealers report fairly positive reactions from existing customers and it seems that Buick believes that it can hang on to those older, traditional buyers even as it aims for a more youthful target.

--M.D.

GM’s Whitacre Getting Impatient -- Heads Roll

2010-03-09T07:31:00.001-08:00

Not satisfied that GM’s sales are growing fast enough, CEO Ed Whitacre is shaking up the executive ranks once again and will bring some previously axed dealerships back into the fold.

The latest victims of his impatience are Cadillac’s marketing and sales departments. Bryan Nesbitt, who headed the brand’s sales and marketing and who starred in the Cadillac presentation at the Detroit car show just eight weeks ago, has been demoted back to the design department. Other execs at Cadillac were let go altogether.

Recognizing that you can’t sell cars from empty lots, GM also announced that it will let more than 600 dealers who had been flagged for termination back into the tent. The move will also reduce by half the number of arbitrations that the company will face over the closings.

Was GM stung by Ford’s sales lead in February? Does management think they should be picking up more disaffected Toyota owners in the wake of that car maker’s recall problems? GM officials, of course, won’t say one way or the other, but apparently there is no such thing as status quo at the Ren Center right now.

--M.D.

Get ‘em While They’re Hot: Viper Production About to End

2010-03-07T07:45:00.000-08:00

At the end of this month, Chrysler will begin building the last 500 Dodge Vipers, the brand’s halo sports car that has been in production for nearly twenty years. A number of special package versions as well as 50 ACR models will be included in this last batch, according to the Detroit News.

The Viper was first introduced as a concept car during the 1989 car show season and was championed by none other than Bob Lutz, who was working at Chrysler at the time. Chrysler surprised the automotive world when it announced that the Viper would actually be produced for sale in 1992 and would include a V-10 engine that it developed with Lamborghini. From the beginning, the Viper’s hallmark was its brute force.

It is not certain if or when the Viper might come back. Dodge chief Ralph Gilles told reporters at the Chicago Auto Show that his team is working on a new version of the Viper but it is too soon to know whether it will see production. Given that Chrysler’s parent company, Fiat, also owns Ferrari and Maserati, a 21st Century version of the Viper could be an interesting exercise.

--M.D.

GM's Lutz To Retire -- Again

2010-03-03T20:59:00.000-08:00

After much speculation and an aborted retirement attempt last year, the legendary Bob Lutz will retire from GM for good on May 1st of this year, according to the Detroit News.

One of the most colorful and forceful figures in Detroit in at least a generation, Lutz has worked, at one time or another, for all three American car makers and was the driving force behind such notable vehicles as the Dodge Viper, the Pontiac Soltice and the Chevrolet Volt.

No official statement has been forthcoming from either GM or Lutz, which is driving speculation regarding the retirement. He had been critical of limits on executive pay packages in the wake of GM’s bankruptcy and subsequent government oversight of the company’s operations. He also had found himself at odds with other GM executives over projects such as the Cadillac Converj which Lutz believed should be brought to market but which GM officially canceled just this week.

--M.D.

February Sales: Good News for Ford

2010-03-03T11:32:00.001-08:00

February sales figures are all in now and Ford came out the winner with a 43% increase in sales over February 2009. What’s more, Ford managed to edge out GM for the first time since . . . well, it’s been a long, long time. The totals: 142,006 for Ford vs. 141,535 for the new GM.

Toyota, not surprisingly, saw a decline of 9%, though, given the recall turmoil, many experts were expecting an even bigger drop. Subaru and Nissan posted nice gains at 38% and 29% respectively while Honda showed a more modest increase of 13%.

Chrysler sales were essentially flat with an increase of barely 400 units over last year. While up is always better than down, Chrysler will need to come on much stronger than this if it is to meet targets set by Fiat chief Marchionne for 2010. With few fresh products planned until late in the year, it seems unlikely that its numbers will look much better in coming months.

The biggest losers? Smart dropped by nearly 69% and Suzuki was off 61%. One has to wonder if the market for the Smart ForTwo was more limited than parent company Daimler thought and has already saturated. Suzuki has been trying hard to raise its profile in the U.S. market with products such as the new and well-received Kizashi but, apparently, to no avail. With its strength in other markets, most notably India, one wonders how much longer Suzuki will keep trying to establish a foothold here.

--M.D.

Volvo’s Lofty Goal: No One Dies In Their Cars

2010-02-28T07:10:00.000-08:00

Since the introduction of auto safety standards, highway deaths in this country have been on a steady decline. At one time automobile deaths hovered around 50,000 per year. That number now is closer to 35,000 despite more cars on the road and more miles being driven.

However good that news is, Volvo wants it all. The auto maker has set as a goal zero highway deaths in their cars by 2020, according to Wards Automotive. Other manufacturers are said to be examining this as well, though none has been bold enough to announce it publicly.

As the saying goes, “We have the technology”, but is there a risk for Volvo in going down this road? Could it be interpreted as a promise that could expose the company to increased risk of litigation?

The vast majority of car crashes are caused by operator error and this element can be difficult if not impossible for a manufacturer to control. New safety measures such as Volvo’s City Safety system can do much to reduce crashes, but they can also lull drivers into a false sense of security and make them even less engaged in the operation of their cars.

A better idea: More comprehensive driver training and higher standards for licensing. (IMHO.)

--M.D.

Auto Credit Market Shows Signs of Loosening Again

2010-02-23T08:54:00.000-08:00

The down turn in auto sales over the past two years was partially due to the weak economy and diminished consumer confidence but was also driven by a lack of available credit for car loans in the market place.

Automotive News reports that the credit side of the equation is improving and lenders not only have access to more lendable funds but have also relaxed lending standards -- somewhat. For at least a year getting a loan was difficult even for buyers with fairly good credit. Now, with more money available, buyers with less than super prime credit ratings are finding it easier to get approval.

It helps that those buyers are also coming into the market better prepared. The article notes that they are paying down credit cards and bringing larger down payments to the table when applying. The expanding availability of credit is also helping dealers build their inventories.

--M.D.

Honda Gains Most From Toyota's Woes

2010-02-21T08:40:00.000-08:00

The Detroit News is reporting that Honda seems to be profiting most from Toyota’s recall problems. Comparing sales data from the first twenty days of February to the same time frame in January, the newspaper found that Toyota’s market share has taken a nose dive, dropping from 17.5% to 12.2% in just one month. At the same time Honda’s share rose from 11.2% to 13% while Ford, posting the second best gain, saw a bump from 10.6% to 11.7%. The numbers reflect retail sales only.

The data show that the Chevrolet brand also slid slightly from 10.3% to 10.0% despite generous incentives and heavy marketing. Honda went fairly light on the incentives and avoided special offers to Toyota owners to entice them to trade. Also interesting to note that the two Korean brands, Hyundai and Kia, now account for 7% market share.

If the trend continues for the rest of the month, Honda will emerge as America’s most popular brand and, with a little push, Ford could regain its number two position.

--M.D.

Chrysler To Revamp, Rename Mid-sized Cars

2010-02-17T20:06:00.000-08:00

Amid concerns that some its cars are hopelessly out of favor with buyers, Chrysler is promising to breathe new life into its mid-sized lines when it brings out redesigned models late this year. The Chrysler Sebring and Dodge Avenger are scheduled to receive major “freshenings” to try to keep them competitive until completely redesigned versions with Fiat underpinnings come on line in 2013. The company is even considering changing the names in an attempt to get the public to forget just how awful the current versions are.

Fiat chief Sergio Marchionne went so far as to say that the refreshed models will be “completely different animals”, though one has to wonder just how different they can be since they will be built at the same plants and on the same platforms as currently. One also wonders if it will be too little, too late. Sales of the two cars tumbled dramatically in 2009 and they have practically become the laughing stock of the industry.

Maybe Marchionne plays his cards close to the vest, but there has been precious little at the major car shows this season to suggest that anything much is going on at Chrysler beyond some new trim packages. These things take time, of course, but time is not on Chrysler’s side.

--M.D.

Chevrolet Caprice Police Car Returns to Duty

2010-02-14T05:03:00.000-08:00

Tucked away in a corner of the Chevy display at the Chicago Auto Show was a fully equipped Chevrolet Caprice PPV, the first Caprice police cruiser since the last generation of rear-drive, body-on-frame Caprice Classic was discontinued in 1996.

Available in 2011, the Caprice PPV is based on the same rear-drive platform that underpins the Camaro and the late, lamented Pontiac G8, though with a longer wheel base. Both V-8 and V-6 engines will be available, with the 6.0-liter V-8 producing 355 horsepower. Special police package equipment will include high-output alternator, engine oil, transmission and power steering coolers, 18-inch steel wheels with bolt-on center caps, heavy-duty suspension components, and police-calibrated stability control system.

The Caprice PPV will be built in Australia (as was the Pontiac G8) and will not be offered for retail sale. With the demise of the Crown Victoria next year, the timing of the Caprice’s introduction couldn’t be more appropriate. Ford is rumored to be working up a police version of the Taurus but no details of that car have been released yet.

--M.D.

A Tale of Two Press Conferences

2010-02-12T06:04:00.001-08:00

Chicago Auto Show: Toyota's press conference on the left, Kia's on the right. Which one looks like more fun?

--M.D.

Honda Previews Next Odyssey Minivan

2010-02-11T13:47:00.001-08:00

The Honda Odyssey pictured above is just a concept but Honda says that the next generation minivan will closely resemble this when it is introduced later this year.

Honda's research shows that minivan shoppers are more style and image conscious than before and often gravitate to SUVs because of their sportier styling. To try to boost its market share in this segment, Honda set out to design a more rakish, sporty Odyssey. The new van will also provide more interior room, especially head and leg room, and with its Variable Cylinder Management system should turn in better fuel economy than the current Odyssey.

The new van was designed, engineered and will be built in the U.S. specifically for this market.

--M.D.

A Tale of Two Transit Connects

2010-02-11T13:27:00.001-08:00

Ford rolled out two new versions of its Transit Connect cargo van yesterday at the press preview for the Chicago Auto Show. The all-electric version was developed jointly with Azure Dynamics and Johnson Controls-Saft. It sports a 55kW motor and 28kW-hr battery. Ford claims a top speed of 75mph and a range of up to 80 miles. The electric version provides the same cargo space as the gasoline version.

The taxi package is fueled by either compressed natural gas or propane with the fuel cylinder located in the cargo area immediately behind the second row seat. Ford says that the Transit Taxi would offer the same room, comfort and luggage capacity as a traditional sedan taxi (i.e. a Ford Crown Vic) but would be more maneuverable, take up less space, be more fuel efficient and produce fewer emissions than traditional taxis.

Both models are supposed to be available later this year.

--M.D.

Kia Introduces the 2012 Dodge Intrepid

2010-02-11T07:50:00.000-08:00

Actually, this is the Kia Ray concept car. Kia says that a future model, coming soon, will closely resemble this. Can't help but notice that it also resembles the second generation Dodge Intrepid. Kinda, sorta.

--M.D.

Toyota: Nothing Is More Important

2010-02-10T13:31:00.001-08:00

North American Toyota boss Bob Carter told reporters today that his company is completely focused on repairing problems with its cars and that nothing is more important to them than the safety of its vehicles.

As has been widely reported, Toyota has identified a fix for the alleged sticky accelerator pedals and is installing them in customers’ cars as quickly as possible. Over 200,000 cars have been fixed so far and Toyota dealers are repairing them at a rate of about 50,000 per day.

When asked if the company has any plans to change suppliers over the issue, Carter insisted that they are not focused on placing blame for the problem but in finding solutions. He said that Toyota takes full responsibility for the problem.

--M.D.

A Tale of Two Truck Frames

2010-02-10T10:57:00.001-08:00

Day one of the Chicago Auto Show press preview. Chevrolet shows off its new

Silverado HD that's brawnier in nearly every way. Chevy welded an old frame (left side

of picture) with a new one (right side) to demonstrate just how much sturdier the new

chassis is.

The Silverado HD also is available with a new 6.6-liter Duramax diesel that boosts

horsepower, torque and fuel efficiency. Chevy claims a range of 680 miles per tankful.

--M.D.

GMs Chinese Ventures Paying Off

2010-02-07T08:00:00.000-08:00

GM sales in China continue to surge and in January the company sold more cars there than it did in the U.S. (219,000 cars vs. 146,000). China’s auto market grew to become the largest in the world last year and nearly every manufacturer selling cars in that market is reaping the benefits. Ford saw sales grow 128% to nearly 31,0000 units while Toyota reported an increase of 53% to 72,000. Small numbers, to be sure, but the Chinese market, along with those of India, Russia and Brazil, is expected to be red hot for some time to come.

The strength of the Chinese market probably figured heavily in GMs restructuring decisions last year. As the company slashed the number of brands it offered from eight to just four, it was clear that Buick would have to remain because of its popularity in China.

For more detail head to Detroit News.

--M.D.

VW Speaks Out About Electric Cars

2010-02-05T07:21:00.000-08:00

Wardsauto.com reports that at a recent Green Car Summit in Washington, D.C., Volkswagen of America president Stefan Jacoby broke ranks with other panelists when he downplayed the importance of electric cars and hybrids in Volkswagen’s product development plans. Saying that he wanted to be “a little more realistic about EVs”, Jacoby predicted that not more than 10% of his company’s U.S. sales would be electrics by 2020.

Obstacles that stand in the way of expanded use of electrics and plug-in hybrids include the lack of charging infrastructure, the enormous amount of capital that it will take to bring electric vehicles to market and the fact that fossil fuels remain fairly inexpensive, especially in the U.S. Like other European automakers, VW believes that clean diesel technology will be far more important in achieving environmental and energy goals in the near term.

Jacoby went on to say that government regulation alone will not achieve those goals, insisting that VW makes “cars for consumers, not government regulators”.

Brutally honest, but honest nonetheless.

--M.D.

Take A Break From The Bad News

2010-02-02T07:54:00.000-08:00

You probably have never seen this car, and chances are that you never will. The owner says that this is the only Mikrus MR-300 known to exist in the United States. I spotted it at a microcar show in Racine, WI, in 2008.

Designed to be a low-cost “people’s car”, the Mikrus was built in Poland in the late 1950s. Sporting a 300cc, 2-cylinder, 2-stroke engine mounted in the rear and seating for four, the Mikrus wasn’t particularly fast but is said to have handled fairly well.

Only about 1700 of these little cars were built and it isn’t entirely clear why production was discontinued in 1960, although political pressure from the Soviet Union may have played a role.

For more information follow this link.

Mercury To Stay (For a While)?

2010-01-29T06:03:00.000-08:00

If you missed the Mercury display at the Detroit auto show, that’s understandable. It was tiny (see above).

In fact, rumors have been swirling for several years that the brand’s future is in doubt. However, when asked at the Detroit show if Mercury had a future, Ford CEO Mullaly firmly said yes, according to Edmunds.com. Rumor also has it that the division will get its own version of the new Focus when that vehicle hits the showrooms next year. On the other hand, we do know for (almost) certain that the Grand Marquis will go away in 2011, too.

Stay tuned.

--M.D.

Toyota Recall: Problem Solved, But . . . ?

2010-01-27T18:36:00.000-08:00

According to Automotive News, Toyota has identified a fix for the most recent sudden acceleration problem which caused the auto maker to cease production and sale of many of its models. The supplier of the affected parts, CTS, is said to be ready to begin shipping replacement parts but it will take some time to make enough for the millions of cars that could be affected. A source indicated that the volume is more than CTS produces in a year.

Once the replacement parts are available, they will have to be installed in the affected vehicles, including those at factories, in transit, in dealer inventory and those in the hands of owners, all of which will take even more time. Toyota announced that it will suspend production for one week beginning February 1st at factories in Kentucky, Indiana, Texas and in Canada while it waits for parts to begin filling the supply line.

--M.D.

Where Have All The V-6s Gone?

2010-01-24T06:23:00.000-08:00

As you cruise the car shows this winter, take a look under the hoods of some of the latest models and concept cars. Count the number of V-6 engines you see. Chances are that you won’t find as many as you did last year.

Hyundai pulled the V-6 from the Sonata’s engine line-up. Buick’s new Regal, a fairly large sedan, will only be offered with an I-4. BMW and Mercedes are said to be about to reintroduce 4-cylinder engines in some of their cars. Fiat will begin producing its 1.4-liter MultiAir 4-cylinder in the U.S., first for Fiat 500s assembled in Mexico but later for Chrysler branded products.

Detroit News columnist Scott Burgess thinks that V-6s may be a vanishing breed. He notes that new technologies are wringing more and more horsepower from smaller engines and offering improved fuel efficiency in the bargain. Buyers may prefer the smoothness and power of a V-6 in mid-size and larger vehicles, but will be perfectly happy with 4-cylinders if gas prices head back toward $4/gallon, especially if they can get the kind of horsepower automakers are now able to offer.

Not to suggest that V-6s will completely go away (heck, you can still buy V-8s and even V-12s) but it seems that I-4s are going to be the dominant power source for automobiles, even here in the good old U.S.A.

--M.D.

Fiat MultiAir Technology Coming to U.S.

2010-01-21T10:56:00.000-08:00

When Chrysler emerged from bankruptcy last year, Fiat was standing by to assume a 20% stake in the company without actually putting any immediate cash into the deal. Fiat’s stake can grow to 35% if they introduce new, fuel efficient, American-built technologies to the Chrysler line.

To that end, Fiat announced that it would begin assembly of its new 1.4-liter Multi Air 4-cylinder engine at a plant in Dundee, MI, later this year. Initially, the engines would be installed in Fiat 500s that will be assembled at a plant in Mexico. Later, the same engine would be adapted for use in a variety of Chrysler branded vehicles.

Incorporating a completely new air intake technology, Fiat says that the engine can produce at least 10% more power and 20% fewer emissions than comparable engines with traditional valve controls. The engine, in a radical departure from traditional design, removes all direct mechanical linkages from the intake valves instead utilizing electronically controlled hydraulic valve actuation to more precisely control air intake to the cylinders. The system can control intake to each cylinder independently and vary control from one stroke of the engine to the next.

For a more detailed explanation, follow this link.

--M.D.

GM offering a few perks to Pontiac owners

2010-01-18T17:49:00.000-08:00

In a move aimed at keeping Pontiac owners loyal to General Motors, the company is offering owners of Pontiac models four free service visits this year.

The offers, which apply to owners of 1999 and later Pontiacs that were purchased new or as certified used vehicles, cover oil changes and tire rotations. The offers were mailed out to owners within the last month or so. The letters pointed customers to the nearest Buick or GMC dealer for services.

General Motors lost a lot of previous customers when Oldsmobile folded, and the company hopes to avoid that this time. The idea is that satisfied customers might stay within the GM fold once it's time to trade their Pontiacs in.

[Source: Automotive News]

Detroit Auto Show: The Out Takes

2010-01-18T06:33:00.001-08:00

Watch your step as you wander around the BYD display.

Detroit Auto Show: The Out Takes

2010-01-16T18:17:00.000-08:00

So why did Fiat chief Marchionne

have to wear a wrist band but

Ford's Mullaly didn't?

Grinding The Rumor Mill

2010-01-16T05:57:00.000-08:00

Scion Ponders Small Truck

The rumor: Wards Automotive reports that Toyota's Scion division is contemplating adding a small truck to its lineup. Such a product is just in the talking stages for now, apparently, so no details are available as to what it might look like or how it would fit into both Scion's and Toyota's overall product planning.

A Scion offering in this category could cut into sales of Toyota's Tacoma, something Scion would have to try to avoid. A small recreational truck aimed at active lifestyle buyers might be the sweet spot Scion would shoot for, though others (e.g. Subaru Baja, Honda Ridgeline) have taken that approach with limited success.

My take: Scion is clutching at straws. Its sales plummeted more than almost any other brand last year (50%) and have been declining for several years. Whatever magic it may have had initially, it's gone now and if Toyota can't rekindle it the company may be have a tough choice to make. Keep your eye on this one.

--M.D.

Detroit Auto Show: The Out Takes

2010-01-15T19:25:00.000-08:00

High tech cars, high tech displays, low tech muscle.

--M.D.

Detroit Auto Show: The Out Takes

2010-01-15T07:31:00.000-08:00

Giant rodent invades Cobo Hall. Tries to steal a Kia.

--M.D.

Name This Car

2010-01-13T13:18:00.000-08:00

Chrysler (er . . . Fiat?) is showing this concept vehicle at the Detroit Auto Show this week. In reality, it is a Lancia Delta with a Chrysler-like grille grafted onto the front. The company has not announced plans to produce such a vehicle, however the five year plan laid out in November did envision Chrysler, Dodge and Jeep branded small and mid-sized cars based on Fiat platforms to come to market over the next 2 to 5 years.

In the mean time we have this bit of vapor-ware that has no name. Any suggestions?

--M.D.

Ford Ups Tech Ante with New MKX

2010-01-13T06:48:00.001-08:00

Lincoln’s new MKX will come standard with Ford’s new MyLincoln Touch, technology which allows the driver to interact with vehicle controls as well as portable media such as cell phones and iPods. System controls can be accessed via an 8-inch color touch screen in the center stack, multiple switches on the steering wheel or by voice commands.

The system also includes two smaller LCD screens in front of the driver which display traditional vehicle instrumentation as well as the MyLincoln information. The driver can scroll through displays via the steering wheel controls. Ford has eliminated traditional buttons and knobs in the center stack and replaced them with controls on the touch screen and other touch-sensitive buttons. Console bins provide storage areas for mobile devices and includes two USB 2.0 ports, video input jacks and an SD card reader.

Ford intends to eventually incorporate the new technology in most of its models.

--M.D.

North American International Auto Show, day 2

2010-01-12T12:46:00.000-08:00

Cadillac XTS Platinum Concept

The second day of press previews in Detroit was a much lighter schedule. First up was Lincoln which brought out the new MKX. It retains the existing body shell but updates the front and rear styling, giving it the signature Lincoln “split-wing” grille. A new interior and instrument panel are also featured and the center stack does away with traditional knobs, relying on touch sensitive buttons and screen, instead.

Cadillac showed us the CTS-V coupe, due out this summer. They also rolled out the XTS Platinum Concept, a large, four-door sedan powered by a V-6 gas/electric hybrid drive train and all-wheel drive. Interior room, comfort and appointments move way upscale. Both Ed Whitacre and Bob Lutz were on hand afterward and both seemed quite proud of the effort. When asked where this leaves “traditional” Cadillac buyer (think West Palm Beach) Lutz seemed willing to leave them behind. “Cadillac is orienting itself against the European luxury brands, now,” he said.

Subaru revealed that they are working on a diesel boxer engine as well as hybrid drive systems. They showed off their Hybrid Tourer concept, one of the few truly outlandish concepts at the show. Subaru takes bragging rights to having had the best year of any car maker during a disastrous 2009. They posted record sales and boosted their U.S. market share from 1.4 to 2.1%.

--M.D.

House Speaker Pelosi at NAIAS

2010-01-12T12:21:00.000-08:00

House Speaker Nancy Pelosi tours the North American International Auto Show

North American International Auto Show, day 1

2010-01-11T15:21:00.000-08:00

The first day of the NAIAS (a.k.a. Detroit Auto Show) was a whirlwind of press conferences with the show’s new, compressed schedule. Still, this reporter made it to a number of them and also snagged a photo of House Speaker Pelosi who was shopping there today with her new friend Sergio Marchionne.

Right after it swept the North American Car and Truck of the Year awards (Fusion Hybrid and Transit Connect) Ford rolled out the 2012 Focus (pictured above). Designed from the start to be a “world car”, essentially this same car will be sold in this form in numerous markets around the globe. The C segment Focus will also serve as the platform for up to ten new models in upcoming years. It hits the streets in early 2011.

Buick/GMC gave a rather lackluster presentation on the new GMC Acadia Denali and GMC Granite concept. The Granite is billed as an Urban Utility Vehicle, is smaller than the Terrain and has an interior that can be configured in a variety of ways for buyers with “active lifestyles”. We’ve already seen the new Regal, so GM trotted out a Regal GS show car, with a turbocharged, 255hp direct injection I-4, all-wheel drive and a 6-speed manual transmission. It looks and feels like a solid product, but no plans for production were revealed.

Toyota showed a hybrid concept that they said would serve as basis for an expanded Prius line in the future but the concept was said to be so fragile that we couldn’t touch it and it did not appear on the show floor after the press conference, making me think perhaps someone broke it. We’ll see if it’s there tomorrow.

Volkswagen brought out their NCC (New Concept Coupe) concept car. Judging by its size and configuration it’s a safe bet that this is a preview of the next-gen Jetta, but VW didn’t actually say so. They also announced that the Chattanooga, TN, plant is well under way and should be up and running in just over a year. It represents a $1 billion investment and promises to create 11,000 new jobs.

Honda unveiled the CR-Z, a sporty, two seat hybrid, sort of a cross between the original CRX and the original Insight. Honda will start selling the CR-Z this summer and pricing information will be available later.

An unusually large crowd in the Chrysler area signalled the arrival of House Speaker Nancy Pelosi being escorted by Fiat chief Sergio Marchionne. She even got behind the wheel of a Fiat 500, leaving one to wonder when she last had actually driven a car. If you were wondering if the Speaker of the House gets Secret Service protection, the answer is yes.

2011 Chevy Aveo Revealed

2010-01-08T06:50:00.000-08:00

Chevrolet released details of the Chevy Aveo RS show car which it will put on display at the North American International Auto Show in Detroit next week. The model at the show is expected to be an accurate preview of the 2011 Aveo.

The new Aveo is somewhat larger and more attractive inside and out than the current model and features higher quality materials, as well. Motorcycle inspired styling features include exposed tail lamps and interior trim, according to a press release. The car is powered by a 138-horsepower 1.4-liter I-4 turbocharged engine that will also be offered in the upcoming Chevy Cruze and comes with a 6-speed manual transmission. Slated for a 2011 introduction, the Aveo will be built in the U.S. at a GM assembly plant in Orion, MI.

The Aveo will join the Ford Fiesta, Mazda2 and others in the increasingly crowded “B” segment. Small hatchbacks have never been as popular in the U.S. as they are in Europe and Asia, but buyers here haven't always had such a wide range of high quality models from which to choose. By the end of 2011 this segment will be much more competitive than today and if fuel prices head back toward 2008 levels, these cars could become red hot.

--M.D.

2009: The Numbers Are In

2010-01-07T04:37:00.000-08:00

Auto sales totals for 2009 have been tabulated and while it ain't pretty, an improvement in the waning weeks offers a glimmer of hope.

With just 10.4 million cars sold, 2009 will go down as one of the worst years in recent memory. Nearly every manufacturer was down significantly for the year with the exceptions of Subaru, Hyundai and Kia, which were all up relatively strongly. Even Toyota and Honda felt the pain as each posted a 20% decline for the year. Among domestic companies, Ford had the strongest showing with “only” a 15% drop, GM sales fell by 30% and Chrysler was off by 36% from 2008's lackluster total, turning in its worst performance in almost fifty years.

Last summer's “Cash for Clunkers” program provided a mild boost mid-year and an unexpected surge in sales in December has the industry hoping that the worst may be behind it. Here, too, Ford stood out with a 34% increase in sales in December 2009 vs. December 2008, the best of any major car maker, foreign or domestic.

The top ten list holds few surprises. The Ford F-150 remained the number one best selling vehicle for 2009 while the Toyota Camry/Solara rose to number two pushing the Chevrolet Silverado to third place. All of the models in the top ten saw sales declines for 2009 except the Ford Fusion and Escape which saw sales increase by 22% and 10% respectively.

Analysts are guardedly optimistic that December's increases are a sign of recovery and looking for a better year in 2010, though the market isn't expected to reach its recent highs for at least several years.

--M.D.