Category: BMW
Posted by Neil Winton on Thu, Jul 2, 2009 at 11:56 AMBMW publishes first pictures of its small SUV, the X1
Don't get too excited if you like the look of BMW's new X1 compact SUV; it's not on sale in the U.S. until 2011.
The BMW X1 goes on sale in Europe this fall, and these are the first official pictures of the car, which will make its debut at the Frankfurt Car Show in September. As you can see, it looks like a small X5. Here in Britain, there will be a choice of three diesel engines, with the least powerful 4-cylinder 143 hp able to attain about 45 miles per U.S. gallon. That's right; no gasoline motors. You can also opt to have two-wheel or 4-wheel drive.
BMW hasn't decided yet what engines will be available when the X1, which the company calls a Sports Activity Vehicle, goes on sale in the U.S.
All the manual versions will be available with Stop-Start, which switches off the engine when the vehicle stops in traffic, and fires itself up when you want to move on. This is the first BMW SUV with Stop-Start.
No word yet on price in the U.S. In Britain, the cheapest X1 costs the equivalent of $37,100 after tax.
Category: Fiat
Posted by Neil Winton on Wed, Jul 1, 2009 at 4:46 AMFiat 500 adds convertible to the range, available in the U.S. in 2011
POOLE, Dorset " This non-descript port town on the south-west coast of England will have its profile raised for 3 weeks in 2012 when the London Olympic sailing event is staged down the coast at Weymouth. Last week it had a glimpse of fame, when Fiat of Italy launched its new 500 C (for convertible) here, which is destined for America.
Fiat and its partner Chrysler will be selling the 500 mini car in the U.S. starting in the first half of 2011. Production in North America is likely to begin early in 2011, either at a Chrysler plant in the U.S., or in Toluca, Mexico. Fiat 500 production started in Europe in 2007.
The 500 and its derivatives, the souped up little sibling the Abarth, the new 500 C and perhaps eventually a small SUV and station wagon are currently manufactured in Tychy, Poland, in a joint venture with Ford. Ford’s little city car the Ka is produced on the same production line using common components, although you’d never guess that from the outward appearance of the cars. The Fiat Panda, a cheaper, less stylish, more practical version of the 500, also rolls down the same line.
I was expecting the convertible 500 to look like a typical ragtop, with the side glass area disappearing when the fabric roof was pushed back. But the 500 C cleverly uses what amounts to a giant canvass sunroof, which makes it look just like the old iconic Roman Holiday 500 from the 1950s. The canvass slides back leaving the side windows and roof frames intact. Usually convertible versions of cars are sent off to a specialist coachbuilder. This design means the C versions can be made at the same factory.
In Europe, buyers of the 500 C can choose a 1.2 or 1.4 litre gasoline engine or a 1.3 litre diesel, with a 5-speed manual gearbox. There’s a semi-automatic gearbox choice for the gasoline motors. There’s no word yet which engine will make its way to the U.S. This car is seriously small, even by European standards. It is 139.6 inches long, 33 inches longer than the miniscule Smart city car, but unlike the Smart it does have room in the back for two, small, people.
Prices have yet to be announced for the U.S. In Britain, prices start at the equivalent of $18,800, including tax, for the base 1.2 litre model, up to $23,400 for a well-equipped 1.4 litre model.
Presumably, prices will be much lower for the models made in North America.
Category: Aston Martin
Posted by Neil Winton on Mon, Jun 29, 2009 at 7:35 AMAston Martin’s tiny city car, the Cygnet, is based on the Toyota iQ
British luxury carmaker Aston Martin has developed an upmarket mini car called the Cygnet, based on the Toyota iQ.
The Toyota iQ is a Smart car look-alike with slightly more room in the back for two, small, passengers. The iQ’s fuel tank is flat and stored under the floor.
Aston Martin, which makes the DBS, DB9 and Vantage supercars, said the Cygnet offers a distinctive, intelligent and exclusive solution for urban travel in style and luxury.
Aston Martin didn’t say how much the Cygnet will cost, what engine will power it, when it might go on sale, or how many it expected to sell.
The iQ is powered by a 1.0 or 1.3 litre gasoline engine. Toyota has said the iQ will eventually be powered by some kind of electric motor, but hasn’t announced any details.
Ford Motor Co owned Aston Martin until a couple of years ago, when it sold the company to a Kuwaiti investor for $925 million.
Taurus' grille a redux of Five-Hundred problem
When Ford borrowed the VW Passat's general appearance, enlarged the vehicle and created the Five-Hundred, it just didn't quite thrill people. A couple of years later, Ford slapped the Taurus name on the vehicle and a new three-bar chrome grille. Eh, a little better.
Now Ford launches the Ford-brand version of the Lincoln MKS and... puts another goofy grille on the front.
Industry ace is Ford's new design directorBryce G. Hoffman / The Detroit News
This one is hard to describe, but it resembles a teenager with a mouth full of braces trying to kiss a girl for the first time. Sorry, it just doesn't do it for the rest of the car.
Maybe Ford would be a lot better off bringing in its European designs rather than its Scottish designers if that grille is the best they can do. Look for a change in a year or two... my prediction, not insider information.
Let's hope the rest of the car makes customers overlook that gaffe.
Category: UAW
Posted by Tony Perrucci on Fri, Jun 26, 2009 at 1:04 PMTime for the UAW to assume leadership
The United Auto Workers Union according to critics has always shown up at the benefit party to dine off the success of its host. Rhetoric over substance, endless demands for improved wages, benefits and working conditions regardless of competitive factors engulfing the domestic auto industry has been the past argument. Misplaced accusations blame the UAW leadership for expanding the standard of living for its members and retirees as executives who were responsible for the engineering, financial and production decisions of domestic auto companies the UAW held contractual agreements with spoiled themselves with muti-million dollar salaries, outlandish perks and golden parachutes while remaining virtually complacent to competitive forces swirling around them.
As evidence of that fact, Paragraph 8 of the National Agreement between General Motors Corp. and The International UAW reads in part: “In addition, the products to be manufactured, the location of the plants, the schedules of production, the methods, processes and means of manufacturing are solely and exclusively the responsibility of the Corporation.”
Contractual language contained in Paragraph 8 of the National Agreement dispels the argument of which party was in charge and who has a major responsibility for the decline of General Motors. Going forward, the UAW has the power long denied in past contractual agreements to foster effective and lasting decisions that will re-shape the landscape of the domestic auto industry. In a stunning reversal of fortune for the UAW leadership with support from Washington and to the dismay of auto executives after bankruptcy, the UAW assumes an ownership role to advance the fortunes of the “new GM” while administrating the VEBA for retirees and protecting the rights of current employees. As Wall Street types like to say, “The UAW has skin in the game.”
The UAW always along for the ride in the rumble seat now finds itself in the driver’s seat steering toward the future or destined to be run over by missteps of the past. No longer can UAW leadership point the finger of blame toward management or walk away from the bargaining table and say to its members “not our fault.” In addition, the UAW membership itself, active and more importantly retired (by population) ignore its responsibility to remain vigilant on issues that threaten the survival of a reborn vital American iconic industry. Attending retiree meetings simply to dine on a free lunch of pizza or hot dogs will do little to save pension and retirement benefits earned over a lifetime of work. Apathy is not an option for any UAW member as the domestic auto industry competes in the global economy for a reduced number of units sold annually to a skeptical public.
Ford, be careful what you step into
As The Detroit News reports:
Feds loan Ford $5.9B to build greener cars Nissan, Tesla also benefit from Energy Department fundingWhile I have no doubt that Ford appreciates the access to the money and lower interest rates, you have to step back to see that there is just something ominous in this "gift." Throughout the recent collapse of General Motors and Chrysler, Ford has been able to maintain a certain independence and that has been an advantage in both marketing and customer reaction. Now the Ford team will become "one of those guys."Bryce G. Hoffman / The Detroit News
Dearborn -- After nearly two years of political wrangling, the U.S. Department of Energy approved $5.9 billion in low-interest loans for Ford Motor Co. to help fund the development and production of new, more fuel-efficient cars and trucks.
The money will not just help pay for fuel-sipping engines and electric cars; it will help the nation's only solvent automaker survive one of the worst market declines in the industry's history, which has already sent its crosstown rivals into bankruptcy.
Why has this happened? Besides the tough market conditions, the government has played the roles of Lenny and Louie. Lenny is the guy that causes a big problem for a business. In this case, completely unreasonable mileage mandates... especially for trucks. Then Louie steps in and offers a "little loan for a small price"... your company's soul. Later, when you are still struggling under Lenny's oppressive tactics, Louie informs you that he will have to take over your business "to save it." It looks like Ford is about to step into the quagmire.
How can I question this fabulous "gift?" How could I compare the Federal government to Organized Crime? Well, let me ask you a question: what happens to Ford when they take that money and build a lot of tiny, expensive cars and trucks that people don't want or can't afford?
Japan's big automakers will gain US share, but at a slower pace
After gaining 13 points of U.S. market share in the past seven years, Japan's leading automakers are likely to keep expanding - but not as fast as they have in recent years, according to a research note issued today by investment firm Deutsche Bank.
It predicts the combined U.S. market share of the so-called J3 -- Toyota Motor Corp., Honda Motor Co. and Nissan Motor Co. -- will grow from 35.1 percent to 37.4 percent over the next three years.
Deutsche Bank estimates that General Motors Corp. and Chrysler stand to lose around 7 points of market share in the next couple of years as they restructure, but says most of that business isn't profitable or attractive. It estimates the leading Japanese automakers will take 1.5 to 2 points, or less than a third of the GM-Chrysler business likely to come up for grabs, while Hyundai-Kia, Ford Motor Co. and European carmakers will take the rest.
Category: Ford
Posted by Erich Merkle on Tue, Jun 23, 2009 at 3:37 PMA date with the 2010 Taurus in the Smokies
Think of what the Taurus was, what it had become and what it is again.
When the first Taurus was launched in 1986 it was a game changer for Ford. At its peak it was the best-selling car in America. Unfortunately, the Taurus, prior to its demise in 2005, was relegated to the rental car fleets and the residual value of the nameplate was decimated. It's similar to when parents might leave the house for a week in the capable hands of their teenage kid who then proceeds to throw a party for all of his high school friends. Remember the movies "Sixteen Candles" and "Risky Business" and what the homes looked like the morning after? The Taurus house looked much the same with the phone in the fish tank, people passed out under the glass coffee table, beer cans strewn inside and outside of the house. The vehicle was in need of a massive cleanup.
One small business owner and friend of mine would pick up Tauruses cheap as company cars and had commented that it was the "Bic razor of automobiles." You could buy a just-off lease Taurus with pocket change and throw it away when it was no longer economically viable to fix it. Not exactly the way you want your product thought of.
The Five Hundred replaced the Taurus. It began production as a 2005 model, but was plagued by quality issues and a design that could be best described as a car. Perhaps it should have just been called Ford Car. The name would have at least matched the level of excitement generated by the Five Hundred.
To understand just how far Ford has come with the 2010 Taurus, one needs to appreciate where they have been. While the two vehicles are only separated by five years, they might as well be separated by decades given the incredible enhancements made to its visual appearance, performance, and quality. There are three basic components that I look for in a new vehicle:
1) Does it have visual presence on the road?
2) Does the product have a quality look and feel?
3) Does the vehicle perform, relative to its competitive set?
While it would seem that many vehicles would fit these simple criteria, it’s actually very rare. It's possible to have success when a vehicle is incredibly strong in one area, but it guarantees success when you hit on all three, as with the 2010 Ford Taurus. Earlier examples might partially include the Chrysler 300C. It broke the mold on visual road presence and it performed great, albeit in a very old school “American” muscle car way (which I can very much appreciate). Product quality was and still is a weak spot for Chrysler, but the 300C outperformed so overwhelmingly in the other two categories that success could not be denied.
Enter the 2010 Ford Taurus. It definitely has the visual presence, much like the initial launch of the 300C. Unlike Chrysler, Ford has made great improvements in its quality scores over the last five years. Not only is this evident in the data, tracked by independent third parties, but the vehicle itself backs it up with outstanding fit and finish along with the use of quality materials that incorporate different colors and textures. Pay particular attention to the ice blue instrument cluster. It has great depth and presence, conveying a real sense of quality and precision.
The 2010 Ford Taurus hits on all three criteria. Great looks, quality and performance. It all comes together giving the 2010 Taurus the look of a vehicle that is much higher end. The performance, while a somewhat different feel from the 300C, is incredible! The 300C provides more of a straight line muscle car feel that comes from rear-wheel drive, while Ford’s 2010 Taurus feels more modern. Trust me; the 2010 Taurus can certainly cut through the Smoky Mountains, providing superior handling relative to any vehicle in its competitive set.
Look for 2010 Taurus projections to go higher. Ford should easily pass through U.S. unit sales of 100K next year with the Taurus. If the economy can cooperate 115K to 120K should easily be within reach. We have known for a long time that Ford can hit the mark in the light truck segment. Now we know they can do it in the passenger car segment, too.
The all-new Ford Taurus shows us that Ford can go up against the best in the world - and win!
A friend of mine uses the analogy of “fighting above your weight”. The 2010 Taurus certainly does that.
Category: Trends
Posted by David Phillips on Mon, Jun 22, 2009 at 8:12 PMQuality study all about splitting hairs these days
If you are shopping for a new sedan, minivan or one of those sexy new crossovers, you'd be hard-pressed to pick a junker these days. That's the key message from the Monday release of a study on new 2009 vehicle quality.
As it does every year, J.D. Power and Associates posed some 223 questions about new vehicle quality to some 80,000 consumers who purchased a new 2009 model. Because of the industry's severe sales slump, it took an extra month to get an adequate sample size for the 37 brands and 192 individual models surveyed.
The vehicle with the fewest problems after 90 days - the Lexus LX SUV - had just 52 problems reported per 100 models surveyed. That is less than one problem per vehicle.
J.D. Power won’t disclose the vehicle with the most problems, but will say it had 181 problems per 100 vehicles sampled. That is less than two problems per vehicle, and a respectable showing compared to the early years of the study.
"No one is building junk anymore - those days are over," said David Sargeant, vice president of automotive research at J.D. Power and author of the study. "We're really talking about the difference between a really good car and a great car these days."
When it comes to out-of-the-gate quality, where is the industry making the biggest improvements or acing consumer expectations? The simple defect - a paint chip, water leak, wind noise, failed engine - is becoming history. And fewer consumers are complaining about gas mileage for several reasons - fuel economy is actually improving, manufacturer's posted fuel economy estimates are more accurate these days because of new federal labeling laws - setting more realistic expectations; and gas prices have dropped or stabilized.
Where is the industry going backward? When it comes to designing audio, entertainment and navigation systems, consumers still have a bevy of gripes - even if the "interfaces" are defect-free. In many cases, it is a matter of educating consumers - a process that often falls on the dealership or salesman.
Initial quality for select newly launched and redesigned models led by the Hyundai Genesis, Kia Borrego, Toyota Venza and Volkswagen CC - also improved, countering conventional wisdom that new models can be problematic. But Detroit still appears to be struggling here, with models such as the Ford Flex, Pontiac G8 and Dodge Journey scoring below their segment average. Even those models generated fewer than two gripes per vehicle purchased.
Category: Europe
Posted by Neil Winton on Mon, Jun 22, 2009 at 10:36 AMSales slide in Europe slows, but bad vibes build for 2010
Don't be fooled by the relatively rosy looking car sales figures from Europe. Sure, government scrapping incentive schemes have rescued the cheap end of the market, but investors believe this has mainly been achieved by bringing sales forward and expect 2010 to be the year when grim reality asserts itself.
The Fitch Ratings Agency said the outlook for Europe's automotive industry continues to remain difficult over the next 18 months, as it experiences one of its deepest-ever downturns.
"Lower consumer spending and confidence are likely to pressure new vehicle sales and the sector's product mix, as consumers increasingly opt to purchase cheaper vehicles which are less profitable for manufacturers," Fitch analyst Emmanuel Bulle said in a report.
John Lawson, analyst with Citigroup Global Markets, said Western European sales were down just 4 percent in May for an impressive annual selling rate of 15.5 million. But 2010 will be payback time.
"Forecasts which once feared a 15 to 20 percent fall in 2009 in European sales are being revised upwards because one in five European cars sold are currently benefitting from government incentives," Lawson said. "It looks increasingly likely that 2009 will show modest contraction of sales of about 5 percent, raising the likelihood of a contraction in 2010 when most support, notably German, will be withdrawn."
J.D.Power, in a report saying Western Europe sales fell by 4.2 percent in May, said German sales were up nearly 40 percent. But the bell tolls for 2010.
"In the midst of the most severe recession in generations this is a remarkable result, but it marks a situation that will not likely be sustainable beyond 2009," said J.D.Power analyst Pete Kelly.
"Germany is not likely to see a renewal (of the scrapping scheme) after 2009. As a result the West European market will suffer, simply as a consequence of the likely fall in sales in Germany in 2010, a fall of over 1 million units, all other things being equal. This leads us to the view that sales in 2010 will be down significantly on the 2009 level, perhaps falling to, or even below, 11.5 million units next year, after achieving a full-year total of around 13 million in 2009," Kelly said.
Fitch's Bulle said weak demand and lower sales will exacerbate the general overcapacity of Europe's auto industry, and lead to forced restructuring. However this is likely to take years, not months, leaving the industry struggling for profitability for some time to come.
The title of the Fitch report sums up the prospects for the industry - "European Auto Manufacturers: Slower, Lower, Weaker."
