GM’s Stock Worthless

From Inside line

DETROIT — General Motors stock tanked precipitously by 30 percent on Monday on news that Deutsche Bank analysts called the stock worthless — and predicted the company could be out of cash as soon as December. GM stock is at its lowest level in six decades, hitting a new low of $3.08 on Tuesday morning

How the mighty have fallen, GM… once the 800 pound gorilla of the business world is now on life support and begging for a handout from the government.

Ironically with all the bad news about the auto industry and GM and Ford/Chrysler in particular, all these companies have vastly better products for sale now and in the pipeline than they’ve ever had in the

past.

Unfortunately all three are the victims of a perfect storm of lingering bad public perception, a meltdown in the economy and the distaste left in the  minds of the truck buying consumer after gas prices reached stratospheric levels earlier in the year.

The help cant come soon enough.

GM & Ford and India

This posted from Insideline…

.

DETROIT — Chrysler and General Motors appear to be following Ford's lead in cultivating closer ties with India's automakers. GM is discussing the sale of its Hummer brand to Indian SUV specialist Mahindra & Mahindra, while Chrysler is negotiating a possible alliance with Tata, the Indian company that last month acquired Jaguar and Land Rover from Ford.

It would have seemed like a bad joke to even consider selling any premium mark to a foreign government much less India..Insert crude Joke here…

India is now one of the worlds fastest growing economies, and with its share of Billionaire entrepreneurs, and a possible perfect fit for an ailing domestic auto maker to sell or strike up an alliance.

You can’t blame ford or GM for trying to stake territory in a country with the kind of potential that India shows,my only guess is that both automakers would probably come to the negotiating table in a position of weakness and may not be able to strike the most lucrative deal.

Otherwise it looks like GM may be stuck with Hummer for a while and Ford

is still looking for answers to it’s financial predicaments.

Link

Chrysler to stop leasing programs

In what must be one of the unbelievable moves to come in a long time, Chrysler has made it’s intention to stop offering leasing programs for the their dealerships known.

While this is certainly causing reverberations in Chryslers dealer body its really not surprising to anyone watching the the worsening financial pictures for the automakers, and with resale values of large trucks and SUV's plummeting. it was only a matter of time until the leasing programs where reduced or pulled all together.

While leasing can be seen as one of the smarter moves of the Auto makers to improve sales and the various programs did. It was for the most part seen as a sign of the bigger problems facing the industry in general.

Over the last 15 years as cars have become increasingly more expensive and and the average salary hasn't kept pace new more creative ways where devised to increase the sales for the various manufacturers.

In other words, leasing is a way for people to Rent a vehicle that they would otherwise not be able to afford, but with many cars now costing the average consumer 20 to 30 or forty thousand dollars, there’s only so many ways to package money and make it work.

This isn’t just a problem for Chrysler,when other companies such as BMW need to increase sales and market share, finding ways for people to buy increasingly expensive cars and Sporty SUV's.

What's really needed is some lessons on better financial common sense and that may be a bigger mountain to climb  then the unaffordable price of cars.

The good old and care free days of free spending and eternal optimism may seem like a long time ago, buts its generally these environments that make for creative thinking.

Now's the time.

General Motors latest Powertrain center

GM let the press get a good look at it’s new powertrain center on Friday July 28th, with out getting into all the details I’ll just provide a Link

Autoweek…

GM unveiled the center in Pontiac, Mich., on Friday, July 25. It consolidates 1,200 workers from four other sites under one roof. It has 120 flexible dynamometer test cells--which test engines and transmissions, more than 100 stands to test components and will use 68 new calibration techniques. They will help GM chop an average of 10 weeks off its powertrain development process. GM expects to save $200 million this year from the streamlining.

While the economy and high gas priced continues to drag down GM’s profits, the company continues to streamline and reorganize.

It’s unfortunate that this kind of thing doesn’t make the local and national news, whenever one of the domestic automakers runs in to trouble, the media always considers that news worthy, but something like this which can only have a very positive long term impact on the company goes unmentioned.

Doom and gloom is always the first order of the day.

Jump to the story

Podcast coming soon

Well it seems that yours truly is a glutton for punishment, and though I don’t have  enough time to do all the things that I need to do I haven't been able to get past the burning desire to do my own Podcast.

Be forewarned, it will raw and unprofessional as I’m in unfamiliar territory and have yet to become acclimated to this kind of media.

While I’m somewhat late to the party, some people have already been doing this for quite some time and have already recorded hundreds of Podcast's, hey Sam Walton never considered the fact that Sears had been doing it for many decades before he opened his first store and I have my own style and way of expressing my self.

While dawn and Drew may have made it to the big leagues, I hope to just find that I enjoy this or this little project will be short lived.

Here we go.

Ford to rehash line in face of massive loss

Well it seems that after an 8.7 billion dollar loss Ford is going to bring more of it’s European line over to these shores, no big surprise here, Europe is a different world than the U.S. with gas prices that have been astronomical for years.

The big question here is what took you so long Ford?  with cars like the Mondeo getting good press and the line up in Europe much better matched

to cope with the realities of an  OPEC at the height of its powers it would seem like a natural thing for some exec in Dearborn to look at the situation over there and think, this is where we have to be.

From Autoweek….

Ford is turning to its highly praised European product lineup to bolster its car lineup in the United States quickly, as sales of pickup trucks and sport-utility vehicles continue to fall.
The automaker detailed some of its product plans on Thursday as it reported a record $8.7 billion loss for the second quarter.
The product moves also breathed new life into the Mercury brand--which industry watchers had figured was likely to die. Ford had even warned Lincoln Mercury dealers that the Lincoln brand was being positioned to become the bigger-selling brand in their stores.

This just seems like putting lipstick on a pig at this point, normally I would say that this is a good move because in essence it is, but it’s reactionary and not proactive.

I think Mullaly’s a smart guy and his years of maneuvering  thru the hallways of Boeings  aircraft division and the world wide politics that go with it still makes him the most qualified to deal with the tuff love that Ford has needed for so long.

Once again the big problem here is the economy, its putting the clamps on everybody, even mighty Toyota is feeling the heat.

The only difference here is that Toyota has a product line and mountains of money to ride out anything short of a nuclear war.  One comes to a point where the head scratching begins, why does this take so long to happen, why doesn't some of these MBAs running the company that Henry built  come to  the realization that these changes needed to be made years ago to put Ford Motor in a competitive position.

In the end it seems that the domestics have an addiction, the addiction of short term profits and the need to ignore the long term, which brings us to where we are today.

Even though it would have seemed the impossible, today Ford is on the precipice and in danger of falling in.

Could they become the next company to join the names of American Motors and Packard, great marks that didn’t survive against tuff competition and changing market dynamics.

It’s starting to feel like it is.

Ford has more good news

If you recently purchased a new Ford Edge or Lincoln MKX, The good people in Dearborn have have some good news for you.

Hey your 2008 Edge may have a secret feature that Ford didn’t charge you extra for, it may be able to catch fire thanks to a small defect  in the gas tank.

WASHINGTON, D.C. — The Ford Motor Co. is recalling 142 of its 2008 Edge and Lincoln MKX all-wheel-drive vehicles to fix a fuel tank weld problem which could result in a fire. The recall is small but noteworthy, since it comes at a critical juncture for the Dearborn automaker as it struggles to maintain its footing and quality standards in trying financial times.

We have to be understanding here, after all it’s not as though Ford has been building gas tanks for its cars before, they were all peddle powered until now right?

Yeah nobody likes a smart ass, but they sure make it easy for me.

Full story

GM goes on the offensive

While GM maybe bleeding money faster than it can make it top Exec Rick Wagoner went on the offensive with the press.

I still think that GM is in the best position to survive of any of the domestic auto makers, Ford seems to be weakest and Chrysler is close behind.

There’s no doubt that the economy has made the road to recovery rocky for all the automakers and practically impossible for the domestics.

And yet for all the doomsday predictions and bad news, the best thing that GM can do is fight back with good product, and that seems to be the message that Rick Wagoner wants to get out.

Link

Happy 4th!

 

Nothing to really post Auto news wise,just wanted to wish every one a safe

4th of July to celebrate the country's birthday.

see you next week.

Joe

Tesla sedan on the way

Tesla Motors has announced plans to introduce a 4 door sedan based on its electric motor technology.

I loathe to link to Endgadget but will try to hold down my food this one time….

Our favorite Terminator (and Governor of California) Arnold Schwarzenegger has just helped Tesla Motors make an announcement that's probably sending chills through traditional automaker's boardrooms. The company has just introduced a fully-electric, five passenger sports sedan dubbed the Model S, which will be selling for $60,000, and will manage 225 miles on a full charge. The carmaker says it will produce the vehicles in a brand new manufacturing plant it's opening in Northern California. We're on the ground at the announcement right now -- no pictures or release date have surfaced yet, but you'll know more as soon as we do.

There’s not much more than this in the Link, but go ahead and hop over if you want to see it first hand.

Read

Chevy Traverse now available

The Chevy Traverse isn’t anything new when compared to its cousins in the GM stable, but what it does share is the excellent interior room and utility with its cousins in the generals line up.

The big question here is the same being presented to the other big crossovers in the market, with gas prices at record levels, the public has reacted by flocking to smaller compact and subcompact cars.

There’s always a need for a roomy and well executed vehicle, it’s just a matter of finding  a balance between utility and good gas mileage.

Link

FIA prepares to Battle Bernie

From Autoweek.....

The FIA World Motor Sport Council has started a review of the way Formula One is governed. It also announced a projected revival of Formula Two next season as a new, low-cost F1 feeder series.
Both moves are seen as direct challenges to Bernie Ecclestone’s F1 group, which holds the commercial rights to Grand Prix racing through 2110, and acquired the GP2 Series in August last year.
Ecclestone’s attempts to put a new commercial agreement in place with the FIA and the teams are being thwarted by Max Mosley. The Concorde Agreement expired in December 2007, but the FIA president has declined to sign a new one and has accused Ecclestone of using the previous agreements to exercise control over the sport.
As for F2, insiders wonder how the FIA can possibly create a new category within a few short months, and how it can possibly achieve its objective of operational costs of $310,000 per car.

 

This is just what Formula 1 needs, the FIA deciding that it needs to exercise more control over the worlds most successful racing series.

This stinks of a power struggle, the FIA seems to exercise too much power and influence over F1 as it is, there can be an argument made that Bernie Ecclestone has hurt as much as helped F1, but the last thing needed is Max Mosley playing God with the F1 circus.

Ford Delays 09 F-150

It looks like Ford will hold back by a few months on the 2009 intro of the next Gen F series workhorse.

Nothing surprising here, Ford dealers are awash in the present truck and are in no position to take on the new model.

This is just not good news for Ford and the other Auto makers that relied on trucks for their profits. Things are bad here, in the past a delay in a new generation truck from Ford would be greeted with Dismay and complaints.

Today it's greeted with Crickets chirping, Ford is still far from out of the woods, the product line up is still woefully short of what is needed today.

There's still a real possibility that Ford might not make it, GM is now freefalling towards the same situation.

Times are bad.

ZR1 specs

It looks like Chevy has finally released the official specs and pricing of the ZR1.

DETROIT — Chevrolet announced official performance results and pricing information on Tuesday for the 2009 Corvette ZR1, the fastest Corvette ever built. Pricing will start at $105,000 for the ZR1, including an $850 destination charge and a $1,700 gas-guzzler tax, the automaker said. The price tag for the ZR1 is nearly $33,000 more than that of the 2008 Chevrolet Corvette Z06. In comparison, a base 2008 Chevrolet Corvette coupe starts at $46,950, including destination.

Source...Autoweek

CTS-V at The Ring

The Cadillac CTS, like the upcoming ZR1 Corvette seems to be breaking records regardless of the fact that there are no production versions  in the hands of the media.

A preproduction V-series with what is described as production parts hit the legendary Nurburgring,

The CTS-V lapped the 12.9-mile track in 7 minutes, 59.32 seconds, which General Motors says appears to be the fastest time ever for a production sedan. John Heinricy, head of GM's performance division and race-car driver, piloted the car....Autoweek

While it's too early to go after bragging rites, I'm sure that BMW and Mercedes Benz are watching this closely, they can't have their premium priced barn burners being out done by a relatively affordable  Cadillac.

Jump to the page

The ZR1 and Fuel Economy

If there was ever to opposite in the Auto world it's usually High performance and Fuel economy, and lets face it, if the cost of a barrel of oil wasn't so  high nobody would even bring up fuel economy in this kind of car.

Tadge Juechter an engineer involved in the development of the ZR1 was kind enough to attend an online Q&A session.

One thing that becomes fairly obvious, anyone with the means to buy a

100.000 dollar plus car isn't really concerned with gas mileage.

Read

The 2009 Flex

As expected Fords upcoming Jumbo SUV Flex is starting to make impressions, some of them good and some bad.

At an estimated curb weight of 4,650 pounds, Ford says the Flex will accelerate to 60 mph in about 9 seconds. The company also claims that this is quicker than the Flex's competitors. It's not. In our testing, the GMC Acadia does the deed in 8.0 seconds. The 2008 Honda Pilot does it in 8.6.

Autoweek.

   

This is another porker crossover, where are the advantages of a unibody chassis?

And we're not yet sure what to make of the company's claim that the Flex has the same amount of body roll as a BMW 335i. It's clear that the company is presenting the Flex as a response to the image of the wallowing minivan. We'll wait until we actually get to drive one to make any remarks on that front....Autoweek

How is this going to convince the target market to buy the this thing?

Boes estimates that the Flex will get a class-competitive 23 mpg highway. It can tow up to 4,500 pounds....Autoweek

Not too good a showing for MPG, especially with gas approaching Four dollars per gallon, and what about city mileage?

But introducing a crazy, slab-sided non-minivan that shares its proportions with a coffin and is called the Flex? Now that is brash. And, all right, even bold. After spending a couple of days crawling around the Flex and considering it from all angles, we must say that we hope the thing pays off for the usually hide-bound crew from the Blue Oval...Autoweek

I hope it pays off as well, The Flex may not be the prettiest, but if it's well executed and serves it's target market well, it could still sell in the numbers that Ford is looking for,and needs badly.

Ford can't be blamed for really trying to stand out, with the company trying to reinvigorate itself, you have to aim high and loud so that you can be seen and heard.

As I've posted earlier, the Flex will absolutely polarize most who come across it, Dearborn seems to be determined not to make the same mistakes that it did with the 500 and the Freestyle.

Appearance is really subjective thing, and the Flex may be just what a lot of people are looking for Stylistically speaking, but gas mileage is something that most people are in agreement on.

One thing that could help Ford drive sales is a vehicle line up with outstanding gas mileage, throw in good looks and great utility and this is something that never goes away no matter what the economic environment.

Article

G.M. Posts Loss....Very Big Loss

Yep read it and weep, the General Posted some big losses thanks to charges and some hits from the UAW strike a while back.

What's  to say that can't be better served by taking you to the Article it self.

Autoweek

Ford looking into RWD options

 

This is an older post at Inside line, but it basically covers Ford of Australia efforts to bring a good rear wheel drive sedan back into the blue oval fold in north America.

Anything to bring the desire and excitement quotient up but.... really Ford?

have you guys heard of the Pontiac G8? what about the upcoming Camaro?

I know that Alan Mulally can only do so much in such a short time and the line up should look significantly better next year. But one has to wonder what Bill Ford Jr and company had been thinking  while G.M. and company have the product out and available now.

Link

Buick teases with Invicta

Auto shows are great, you get to see what's available in the show room and what may be coming down the road, and Buick is the one doing the teasing this year while bringing back an old name Invicta.

The Invicta show car is a thinly disguised replacement for the Buick lacrosse. And a replacement can't come soon enough, the LaCrosse has been a disappointment to put it mildly.

Buick seems trapped in the image of its past,  it's the traditional senior citizen transportation module, but now really desires the lucrative baby boomer with money to spend that can't quite swing it for a Lexus.

In all fairness, the Buick Enclave is really the beginning of Buick's image make over but the rest of the model line still screams AARP.

Read Up

New Taurus Spy shots

Well it looks as if the cat may have gotten out of the bag sooner than Ford has liked. Some shots have been circulating the the Internet of the up coming 2010 Ford Taurus.

It looks like Ford will lean heavily on the styling the European Mondeo, and that's not a bad thing, If anyone happened to catch Casino Royal the James Bond flick form a couple of years ago, you got a brief shot of the car.

No.. Ford hasn't commented on the whole thing but has asked some sites to take down the picture which is usually a very good sign that they may be onto something.

The best I can do here is to post a Link and hope that Ford legal hasn't taken it down. Otherwise take a peek and decide if Ford is on the right track.

Ford improving quality

 

Ford is preparing to promote the fact that its quality ratings are improving and are quite competitive with the competition.

Ford Motor Co. says its quality has improved in the last year, pointing to results of a recent study it commissioned that finds Ford's vehicles are in a dead heat with import rivals Toyota and Honda.

Good news indeed, but the damage is done and Ford will have to preach high and low for years to come to regain the sheen that it once had and Toyota and Honda now own.

Fords engineers can design a product as good as anyone,the real work is to change their image to a public that has been conditioned to years of programing, some of right and some of it off base.

Read More

F1s Future

Formula 1, what's not to love, the cars, the international circuits, the exotic technology and unrivaled professionalism.

There's no doubt that Formula1 is the pinnacle of motor sports and to win in F1 is to to win it all. But in my opinion, everything that F1 is and has become started in Europe and especially Britain.

F1s never ending hunger for the highest bidder seems to be at the top of the list for what  qualifies you to a race with Bernie Ecclestones circus.

The prospect of a 20-race Formula One calendar, with three events in the Gulf region, received broad support during the Motor Sport Business Forum Middle East during the Bahrain Grand Prix weekend.
McLaren boss Ron Dennis praised F1's expansion into new markets and said that 20 races would be the teams' logistical limit. Honda Racing's Nick Fry, Force India's Colin Kolles and Red Bull's Christian Horner echoed his remarks.
The 2008 championship is made up of 18 races, after 17 last year and a record 19 in 2005. With several new events in the pipeline, even 20 might not be enough to save all of the traditional venues. The Middle East's races would be in Abu Dhabi, Bahrain and Qatar (still questionable), and those in Asia would be in Fuji/Suzuka, Kuala Lumpur, New Delhi, Seoul, Shanghai and Singapore. The Formula One group also wants to include Indianapolis, Montreal, Melbourne and Sao Paulo. The Australian Grand Prix, the British Grand Prix and the possible Qatar Grand Prix are the events most likely to be dropped.....Autoweek

You can't fault the show, and the racing has become closer and even more exciting, but with all the money that's being made, you'd think that they could allow Silverstone to squeeze by without having to cough up truck loads of money to stay on the schedule.

G8 Powers Pontiac

This little snippet in Autoweek online touches base with the Pontiac G8 and the mostly good impression that it leaves on Cranky Automotive journalists.

Here's one for you, the G8 seems to be what Pontiac needs because it's based on a and tried and true formula, rear wheel drive, great balance and handling, very good looks and lots of value for the money

Some of this formula has worked well for the likes of BMW and Mercedes, and was pretty much the status quo for the American Auto makers for decades.

Then came the gas crunch and the Japanese, then the not ready for prime time response on the American side with badly executed front wheel drive cars, reliability and styling, and before you know it, here we are today.

GM seems to be finding it's way out of the darkness with these kinds of cars and shows that there's still people at the top who know what the public wants.

Read

Ford shares the Love

It looks like Ford is willing to pay and pay well for its top brass and it looks like CEO Allan Mulally has been given the biggest piece of that.

From Automotive news

-- Mulally was paid a base salary of $2 million and incentive bonus awards of $7 million. The $21.7 million total included salary, bonuses, company-recognized expense for stock options and other stock awards, plus other compensation such as vehicle and travel expenses.
Mulally collected $28.2 million in 2006, which included $11 million to compensate him for compensation forfeited when he left his previous employer, Boeing Co.

Amazingly I have no qualms with this as long a he delivers and Ford returns to profitability,otherwise this is just an example of how the compensation plan at the top doesn't seem to reflect what the rest of the world considers a reasonable salary .

Read

The next volley in the never ending saga

Well there's not much I could say that wouldn't be better served with a link.

Now according to the latest dirt, Former Toyota exec Jim Press may be softening his stance, read the following Link and decide for yourself.

Take a look

Name calling at Toyota?

It seems that  there's a bit of name calling going on at Toyota after former Toyota exec Jim Press made accusations that the Japanese government subsidized all of the development costs of the hybrid technology in Toyotas little Prius.

It's hard to believe that Jim Press would just make this all up so that he could get  a little attention for himself and one has to believe that he would have been in the position to know.

The bigger question here is that if this turned out to be true then Toyota would have a distinct advantage over it's competitors. After all if someone else pays for a great deal of your development costs than your profit margins should be rather generous and you could  sell your product at a price that would under cut your competitors if you wanted .

Another point to make, Toyota is no longer the under dog, it's amazing that the Japanese government is still willing to go that extra mile  for a company that now has more money than some small countries and has surpassed its American competitors in size and revenue.

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Ford Finalizing Flex marketing strategy

With Fords upcoming Flex maxi sized crossover getting ready to debut at dealers soon, Ford marketing mavens are putting the final touches on the cars marketing strategy.

Love or hate the Flex it will certainly be different from everything that's presently out there, I'm not so sure that this is the kind of different that Ford needs  especially in this segment where safe and competent is what people are looking for.

The Flex has the kind of styling that polarizes most people in one way or the other, and right now what Ford needs is something that straddles the line between being attractive and practical.

This beast may do well or wallow in the showroom,and with gasoline edging toward 4 dollars per gallon the one thing that could sway people in the direction of this crossover is markedly better miles per gallon than what the Expedition, the Flex's cubic foot competitor can deliver .

Lets hope that this one will go right out of the ball park.

V-Dub Pick up in the flesh

Now anybody who understands the car business will tell you that your average new car intro is planed a few years in advance, so that anything you see today was conceptualized and engineered over two or three years before it even makes it to the market.

Granted that this thing is being introduced in the European market and may not see the light of day here, but if they do decide to bring this here, I hope that it will have one of Volkswagens excellent Diesel options, otherwise why bother.

The market for this sort of thing is contracting and the last thing that people are calling for is a another truck with poor fuel mileage.

Autoweek

Toyota grabs first place in NASCAR Sprint Cup

This from Inside Line...

Busch and teammate Tony Stewart finished 1st and 2nd in the fourth race of the 36-race schedule. It was the first victory in NASCAR's top series for a foreign brand since Al Keller won in a Jaguar in 1954.

Hate to say it but this may be the first but it won't be the last for Toyota in the Sprint Nextel cup, while Toyota seems to have trouble finding it's  way to a victory in Formula one  even with a mountain of money to spend, Nascar is a different animal with a much easier learning curve. 

Once again the hollowed ground of the domestic auto industry has  been invaded, what comfort Chevy and the like could have taken in Toyotas lack of a first place victory in the racing series has now gone up with the tire smoke in Kyle Busch's Victory burn out.

What's a practical car

Inside line has a great  article comparing three vehicles in slightly different classes, A Toyota Sequoia, a GMC Acadia and a Honda Odyssey.the real question here is which one is the best all around vehicle to own.

I'll save the guess work and tell you that the Honda won,this isn't surprising when you really look at it,any minivan could have still finished out on top, the Toyota Sequoia comes in at the bottom and the GMC Acadia finishes in second place.

When you take space utilization and driving dynamics  any full size SUV will usually fare poorly,the Acadia does better because of the lighter curb weight and lower center of gravity, but the minivan in this test went the furthest and was the obvious choice.

Read the whole article at Inside line

Ford recall

If there's a good way to spin a recall I haven't figured out how to do it, it looks like ford had to recall 87,515  of their light duty trucks for improper seat welds.

what  comes to mind for this one, especially so soon after some earlier recalls  a few week ago, I really can't say here, but come on guys get it together, seat belts aren't exactly a new item are they?

Link

A Value priced Prius in China

Toyotas Prius which has gathered it's share of attention in the U.S. after the rise in Gas prices hasn't seemed to have the same desired results in China.

China whose economy which has grown by leaps and bounds seems to have no effect on Toyotas green aspiration Asia,  Chinese consumers seems more interested in status cars and Buicks , then again a Buick is a status car in China.

Toyota Slashes Prius stickers

New Cobalt SS

The Chevy Cobalt which replaced the Chevy Cavalier and seems to have also fallen between the cracks in the minds of the the kids and younger adults who normally shop in this segment.

It's hard to say why the Cobalt takes a back seat in the mind share department, maybe the fact that it resembles the cavalier  could be one reason, otherwise this is a very nice car that deserves more attention than  it's been given.

VW gives Scirocco the green light

As if this would surprise anybody, Volkswagen has decided that it will go ahead with production of the Scirocco in Europe with an eye towards bringing it stateside.

With the Camaro making its debut in a few months and with more competition to follow, now is the time for VW to bring their sporty coupe to the party, the only caveat here is that the car needs to be competitive on price or this one will sit on the sales floor waiting for someone to pony up the money.

Link

Jeep Grand Cherokee Diesel

There's not much to say here that hasn't been said,a diesel engine in this Jeep is a step in the right direction, the only problem is that the rest of the package is out of step with what people want today.

If you want serious towing capacity then go for something in the full size segment, otherwise your needs are better served with a roomier vehicle that can utilize interior space more inefficiently.

 

GM probably has a better answer to your quest for a Big crossover, and Ford my be able to meet your needs with it's upcoming Flex, otherwise most people would be better off steering clear of this throwback.

Consumers Report lists top ten autos

Here it comes and here it is, the latest Consumers Report list of the top Autos sold in the U.S., as usual the list is mostly dominated but the Asian makers with the list changing to reflect the growing popularity of the Korean brands.

While there is no denying that Lexus has a product that's hard to beat, one can't help but wonder if the product and enthusiasm of the owner  can have as big impact and difference in perception, lets face it, the person who buys something like an LS 460 is more apt to show interest and have a favorable opinion on the car vs the person who just scratched together enough money to buy a Chevy Aveo.

This of course  is a mostly subscription based site so Check it out if you'd like.

Scion stalls

From Autoweek

The first-generation Scions were hits right out of the box in 2003 and 2004. But generation two has struggled. All of which begs the question: Is this a brand built to last?
The changeover of two of Scion's three models--the boxy xB and the xD hatchback--dragged on for months and helped depress sales 24.8 percent in 2007 to 130,181 units. But even with new vehicles, Scion can't seem to pull out of its slump.
"We seem to be having more sales peaks and valleys than previously," said Farlon Smith, general manager of Beechmont Toyota-Scion in Cincinnati.
In the past, Scion routinely notched 15,000 to 20,000 sales per month. But January sales were 7,782 units. In January 2006, Scion sold 10,701 vehicles with about 60 fewer dealers than it has now. The average sales per outlet during that period dropped from 11.9 to 8.1.
Scion had 856 dealers as of Jan 1, 2005. But as sales soared in 2005 and 2006, more dealers piled on, even if they weren't in hip, urban neighborhoods.
Currently, 963 of 1,224 Toyota dealers carry the brand. As sales per dealer decline faster than overall volume, one Toyota insider questions whether dealers will give Scion the same share of mind as when vehicles were flying out the door.
Toyota executives insist the soft market is hurting all players and that Scion's grass-roots marketing strategy requires time for the new vehicles to gain sales momentum.

While there seems to be a good deal of explaining going on for why things seemed to have stalled for the second generation of Toyotas supposedly hip Scion brand nobody seems to have a good explanation.

It seemed to have been a good move on Toyotas part, my argument here is that the second generation of Scion may not be quirky enough for the crowd that the brand was originally launched to appeal to, then factor in the addition of many new models from Scions competitors and this may have brought the unexpected slow down in sales.

The tricky part about selling in this niche is that this a traditionally trendy market where potential buyers may flock from one brand to another to get in on the latest thing.

Selling to this market is markedly different than the traditional passenger car market , the average Camry buyer may stick to one brand or model, but this is different group all together.

Paul Tracy out of a job

It looks like after more years than most drivers will ever get to be at the top, Forsythe championship racing is out of business and Paul Tracy, the number one driver there finds himself out of a job and is scrambling to secure another seat.

This is a strange time for everyone that was a fan or followed the Champcar/IRL rift over the years.

Without much warning, Champcar hit the skids and finally gave into Tony George and the IRL,a more accurate description would be... rolled over and begged for mercy from George and his organization.

It's a sad day indeed and I for many years considered myself on the CART/Champcar side of the equation and find all of this quite surreal.

In the end even this diehard admits that it's time to bring the split to an end and restore open wheel racing to it's former glory in this country and give NASCAR some competition  for sponsor dollars .

Now that the day has arrived that Tony George will dictate what open wheel racing looks like, he will hopefully have a balanced schedule that give fans a proper balance of road courses and ovals.

Just maybe this new merged series will resemble the cart of the 1990's.

Autoweek

New Volkswagen Scirocco

Volkswagen looks back to it past with a new Scirocco set to debut at this years Geneva auto show. As expected the car will be based on the modern Golf platform.

You can expect the usual variants of this car, and It wouldn't surprise me to se an all wheel drive and some limited production model down the road.

When this car hit our shores it will cost around $32.000 U.S. and change not counting options.

My memory of this car going back 16 years isn't a fond one, I feel that the little V-dubs from back in the day where under powered and over priced and this seem to be one of the issues that Volkswagen has today in the north American market.

It will be interesting to see how the car stacks up against the likes of the new Camaro,Dodge Charger and a reinvigorated mustang.

Read

No money for big Bill

I promise that this is the last Ford related post for the day, but apparently Bill Ford refuses to accept any money for  services rendered to the company that shares his last name.

According to this latest post on the Autoweek web site, the former CEO will not accept any money until the family business starts to generate some positive cash flow.

From the looks of it, he will be waiting for quite a while and my guess is that present CEO Allan Mulally will be getting the lions share of the money for now.

Link

New Mazda 6 spy shots

As any automotive engineer eventually learns,the chances of having one of your secret test mules discovered by a photographer gets higher the more you go about your business in public.

This latest shot is brought to you complements of the always incredibly efficient Brenda Priddy and company.

These shots show what appears like a significant update to the Mazda 6 chassis that is shared with the latest Ford Fusion.

it's surprising that Fords ongoing problems haven't affected Mazda's fortunes and the company continues to cement it's market share even under the relentless competition in the north American Automobile market.

 Autoweek

More problems for Ford

If Ford CEO Allan Mulally doesn't have enough on his plate, the National Highway safety administration has released what can only be considered  a rare advisory to consumers of what looks like up to ten million Ford Motor company vehicles.

The National Highway Traffic Safety Administration said it is concerned that only about half of nearly 10 million vehicles have been returned for the repair.
“Failure to have the switch disconnected could lead to a vehicle fire at any time,” the agency advisory said.
NHTSA officials did not say whether they have new reports of fires, which can occur while vehicles are parked with the engine off. Some fires have burned homes with attached garages, owners claimed.
The repair involves installing a wiring harness around the switch. NHTSA said in its advisory that owners of unrepaired vehicles should at least have the switches disconnected.

This company can't seem to get a break, while Ford seems to be making headway and has product in the pipeline that should add money to the bottom line, this can't come at the worst time.

This is a P.R. nightmare

Read

Ford Simplifies models

Ford continues to move in the direction of profitability, and another way to do that is to emulate their Japanese competitors options packaging.

Instead of what seems like 500 different options combinations you will only get a half dozen or so, the less confused the customer is the better.

Now get the model mix right and work toward the same goals on the truck side of the equation and you'll be on your way .

The New TSX hits middle age

Acura's latest refresh of the TSX seems to follow the typical formula of making it bigger and giving customers more.

Like any middle aged person the cars seems to have gained a little bit of weight and it's now bigger than it's previous dimensions.

Sporting the corporate front end that you'll either love or hate the car will grow in options and power and overall polish,(just like me).

Click on the link below and take a closer look

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Some consumers trash pilot

It's hard to believe this could be true, but it seems that early consumer reaction to the upcoming 2009 Honda pilot has been Luke warm  at best with some clinic attendees disliking the car altogether.

Now Honda is many things, thrifty maker of affordable cars ,highly focused success story of how a small car company can show the big guys how to do it right.

But one thing Honda has shown inconsistency in is the ability to make elegantly styled cars in the same vain as its competition.

While beauty is subjective end even I think Honda will probably have a winner here, somebody in Honda must be having a few sleepless nights after hearing the news on this one.

Inside line

Dodge Challenger breaks cover

As expected pictures of the New Dodge challenger is popping up all over the web, the car looks great  and Chrysler designers have done a great job of integrating all the retro touches into a new car.

The car is thoroughly modern and should hit a nice niche of people who where either to young to afford one, or someone who just likes the retro throw back styling.

This is really a great time to be a car nut and especially a muscle car fan, it's amazing how classic styling never really gets old.

Ford to pair down product life

As Ford continues to struggle and rebuild its brand and image in the eyes of the public, the company continues to reorganize internally and seems to be making progress towards its goal of becoming profitable.

The latest bit of news comes from Derrick Kuzak Ford’s group vice president of global product development,

Ford will update its vehicles with major face-lifts, technical improvements and other changes in three-year cycles, Kuzak said. The changes will be ones that customers notice, he said. They will be aimed at keeping vehicles fresh and drawing consumers into Ford and Lincoln Mercury showrooms.
By 2009, the average age of Ford, Lincoln and Mercury vehicles will be reduced 35 percent, bringing the average age of the automaker’s vehicles in line with the best in the industry.

This is good news, it can be argued that long product life cycles was one of the contributing factors in Fords market decline and financial problems.

While Toyota and Honda have closely followed four year product cycles to stay competitive and give it's dealer body fresh product to sell, Ford has generally followed a product refresh rate of up to or over 5 years in many of its models.

This has Ford and their dealer body at a disadvantage, it becomes increasingly difficult to sell against updated competition which in some cases would be a generation ahead of some Ford products, this leads to a vicious cycle of price reductions in the hopes that customers will buy the car based on price and not the Value of the vehicle.

The clock is ticking for Ford, and while it seems that GM will be the first of the three domestic makers to return to health,things are moving quickly within the company and it seems determined to return to health.

Dodge Caravan RT

Minivans are practical and the Logical thing to have when one has a family, but the last thing that could ever be said is that a minivan is exciting until now.

Dodge had this beast on parade at this years North American auto Show, and reaction to it was favorable.

                                                                                                    While this presently is a design exercise , it's not too far a reach or based on any type of one off platform that would be too hard to put into production.

 

This could be a first in the segment and may not be much of a surprise considering that Chrysler was the one to start the whole Minivan craze to begin with. 

inside line

New Taurus in 09

In what has to  be one of the shortest product cycles in Ford history, CEO Allan Mulally revealed that Ford was in the process of redesigning the Taurus and would introduce the car in 2009  as a 2010 model.

"It's what we should have had originally," Mulally said of the redesigned Taurus during a speech at the Automotive News World Congress in Detroit. "It's just fabulous."

This is stunning to say the least, when one considers that the 500 and Taurus launched only three years ago and with the reintroduction of the Taurus name last year and numerous changes to the car that where introduced with the changes.

This is a very short product cycle in Detroit terms, the original Taurus was around in its last form for more years than it should have been, and guaranteed that the Japanese would cement their lead in the family car wars.

Refreshing though expensive news, with the present Taurus receiving a lukewarm reception and with Chevy and Honda introducing exceptionally well done products this year, a new Taurus couldn't come soon enough.

All Corvettes are Green

Well at least in the future according to Vehicle line executive Tom Wallace who sees the next Gen Corvette as smaller and greener or more eco friendly.

"I don't think we're going to design a 700-hp Corvette," Tom Wallace, vehicle line executive for the Corvette, said at the Detroit auto show. "What's going to be more important is fuel economy, carbon footprint and green. We have already paid a lot of attention to those areas. Where we can pay more attention is pounds per horsepower."

Ok that's a great way to get out of giving any information to the hungry Corvette enthusiast, but really how many Corvettes are really out there polluting the planet, the car is already very emissions friendly and doesn't even qualify for a gas guzzler tax.

                                                                                                          Just keep the course and focus on a lighter more space and weight efficient car and keep chipping away at the weight of the truck and sedan market, that should go a long way towards helping the environment.

New NSX up in the air

File this under it will never make it to market,it seems that designers at Acura can't come to an agreement as to what the final styling of the for ever under development next Gen NSX, according to an executive  at the company.

"All of the designers are working together on the NSX, but they can't agree on the styling," Dick Colliver, executive vice president of American Honda Motor Co., said at the Detroit auto show.

Considering that the last NSX came to market over ten years ago and even company founder Soichiro Honda was still alive to actually drive it should say a lot about how long Honda has had to come out with a new version of the car.

No doubt Honda will find the motivation when Toyota introduces their high end car, until then I would encourage Honda to find a way to come to a decision and bring the car to market.

How about just flipping a coin?

Jeep to upgrade some interiors

In what must be considered a moment of clarity for someone at the recently privatized Chrysler corporation....

The Jeep Compass and Patriot, widely criticized for their interiors, will get new ones this fall, according to Ralph Gilles, Chrysler LLC designer.

The interior redesign comes well ahead of what would be the normal schedule, he said at the Detroit auto show. The Dodge Caliber car, built on the same platform as its Jeep siblings, will get a new interior slightly later than the Jeeps, Gilles said.

Why do these moments come after the interior has been approved for production and the vehicles are out in the wild? wouldn't it have struck someone as obvious that the interiors are not up to par and have to be upgraded?

It's wonderful that the New Chrysler corporation can move so quickly to change what seems to have been a repetitive mistake thats plagued

the domestic auto industry for years, lets just start catching these mistakes before they get into the hands of the buyer.

Autoweek

Malibu wins top honors

In what has to be another sign that Chevy and GM are making all the right decisions lately,the Malibu was named the north American car of the year by a panel of distinguished automotive journalists.

Considering the depth of talent in the field every year, this is quite a accomplishment and should be taken as such.

Read

Hamilton Signs thru 2012

It looks like the biggest surprise of the F1 grid in 2007 will remain at Mclaren thru 2012, not too surprising considering that Hamilton has been with the Mclaren organization since childhood and has about as tight a relationship with team boss Ron Dennis as you can have and not be biologically related.

This kid will be a world champion soon enough and has the kind of deep seated arrogance that seems to be almost a prerequisite in a cut throat business that is as competitive as F1,

F1 Weekly

Cadillac CTC

Well it looks like Cadillac is doing the obvious and admitting that it will put it's sexy CTS coupe concept into production sometime next year...Good

Ed Welburn, GM's vice president of Global Design, told reporters at the CTS coupe's press conference "this vehicle really wasn't supposed to exist," the new luxury coupe has been part of GM's plan since at least the middle of 2006. Code-named GMX226, the 2010 Cadillac coupe will start rolling down the assembly line at the Lansing Grand River plant in early June of 2009. Annual production is expected to be in the range of 15,000 to 20,000 units

This car is sexy over and over and gives Cadillac a powerful competitor to the likes of the BMW 3 series and Infinity and Mercedes coupes as well.

Link

Autoweek Picks their favorites

Autoweek writes picked the most what they felt were the most significant cars  at this years North American Auto show.

                                                                                                              --Most Fun: Audi R8 V12 TDI concept. "The R8 is already one of the sexiest supercars on the road," said Mandel. "But Audi upped the game considerably with a turbocharged V12 diesel."
--Best Concept: Cadillac CTS Coupe. "We can't wait to see this on the road," said Mandel. "You can even see fins in the taillights."
--Most Significant: 2009 Ford F-150. "This is the bread-and-butter vehicle for Ford. If Ford is going to bounce back, it will do so on the back of this new F-150."
--Best of Show: 2009 Chevrolet Corvette ZR1. "This is an iconic car and an iconic Corvette. A carbon-fiber body and 620 hp under the hood--we love it."
The awards were handed out on Wednesday during the AutoWeek Design Forum in Detroit.

It's certainly bodes well to see a few American cars on the list,the ZR1 Corvette seemed to have captured the hearts and minds of the press which is especially interesting when you consider that that no one has had a chance to drive one, and The 2009 Ford F150 made the list which hopefully bodes well for this storied Brand, Ford needs all the help it can get.

                                                                                                            Audi made the List with its latest concept which is sure to please the discerning consumer with deep enough pockets.

                                                                                                        Cadillac made the list as well with its' upcoming CTS coupe concept which shows that Cadillac is on the right path.

Read the rest

Edge to party in Brazil

DEARBORN, Mich. — American cars are still popular in South America. Ford's Fusion sedan, which went on sale in Brazil, is the midsize segment leader. Now, Dearborn hopes to capitalize on that success by exporting the midsize Edge crossover vehicle to Brazil later this year.

Ford still gets a warm fuzzy feeling from Brazilians and wants to capitalize on the sales of some of its other products, it amazing that the Japanese haven't replicated the  incredible image building that they have in North America.

Mazda to refresh RX8

Five years seems like an awfully long time to wait for an update to its long in the tooth flagship sports car, but if one is even a mild observer of Mazda this isn't the first time that the RX series sports car have been allowed to fester and die.

Mazda seems to copy Chevy's product cycle with the Corvette with the exception, that the Corvette goes thru numerous yearly updates and refinements not to mention the addition of new models to keep the product line fresh and to keep the public interested . Is it also possible that parent company Fords financial woes are effecting the Mazda product mix?

Link

2009 Dodge Challenger

Spy shots are always a good way of bringing reality into focus and with these shots it becomes obvious that the Ford mustang is at the end of its rein as the only modern muscle car that is presently in production..

Withe a new and modern iteration of the Camaro about to become reality the buying public will get to experience what a lot of nostalgia and modern engineering application can do .

This no doubt puts pressure on Ford to refresh the Mustang which has seen sales slow down thanks high Gas prices and the short term memory of the average buyer in this segment, which tends to view cars like the Mustang and it competitors as a fashion statement.

Ford will now need to update the Mustang to meet the new versions of its old nemesis head on, and with companies like Hyundai getting ready to enter the market with updated version of the Triburon, Ford may have to throw some cash on the hood to get it pony cars to move off the show room floor.

Inside Line

CTS Coupe concept

 

Will Christmas never end? Cadillac released it's CTS coupe concept

and the design hits on all the strong points that had made the latest CTS sedan such a critical hit with the press and the public.

To call this car gorgeous is an understatement, you would think that Cadillac would take a breather and coast on the good reviews of the latest CTS, but it seems they have grander plans and a quest for world domination.  Is it possible that Cadillac is serious about once again being considered the standard of the world?                                                     

Read more at inside line

Can you say MKT?

Lincoln joins the rest of Ford and the industry  in introducing future concepts to the world to gage reactions from the public and the Automotive press. My reaction to this one is that it has potential and could drive traffic to Lincoln store show rooms, but this is another one of those examples where it has to be out soon.

Its handsome in the latest Ford design think sort of way, the market has shifted to this kind of product and it's good to see the kids in Dearborn thinking ahead.

2010 Explorer

One of the great things about major auto show such as the Detroit show, is that you can generally get a sneak peak at what the major manufacturers are planing for the future.

Ford is no different and considering the the companys need to show the world that it's thinking ahead Ford has released what it calls the Explorer America. This thing looks handsome to say the least,but one can't help but wish that this one was only a few months away form being available at your local Ford store and not a least a couple of years away.

Read the Autoweek review

Ford F150

Ford is taking the 2008 Detroit auto show to introduce it's latest F150 to the rest of the world, as expected there is the usual amount of expected improvement in torsion rigidity and upgrades in options and about a gazillion different model variations.

Stylistically the truck doesn't stray to far from the current model and for good reason,the present breed of Ford truck has  been a big seller for Ford and adds lot to the bottom line to Dearborn coffers even in the present economic climate.                                                                                        

Read the inside line review