Archive | October, 2007

Toyota’s Third Quarter Sales Trail GM’s

Perhaps they’re not yet the world’s largest automaker.

By Chris Haak

10.22.2007

Toyota Motor Corp. announced today that it had sold 2.34 million vehicles globally in the third quarter (from July to September), as GM sold 2.38 million during the same period (as noted last week on Autosavant here). Also, Toyota’s global sales through the first nine months of 2007 trail GM’s, if by the slightest of margins, with 7.06 million vehicles to GM’s 7.05 million.

At the halfway point in the year, the picture was slightly different. Toyota outsold GM in the first quarter, while GM outsold Toyota in the second quarter. However, as of June 30, Toyota had the lead in year to date sales (4.72 million to 4.67 million).

Ironically, both companies are seeing nearly all of their sales growth outside of their home markets. GM’s sales (with the exception of a few months this year) have been dropping in the US, while the Japanese new vehicle market hasn’t been friendly to many automakers, including Toyota. GM is seeing the majority of its sales growth in developing markets such as Russia, China, and India. Toyota is seeing much of its sales growth in North America.

For their parts, both companies are denying that they are focusing on which is #1 and which is #2, although since the title has been GM’s for over seven decades, it stands to reason that they’d prefer to keep it longer. My hope as an auto enthusiast is that both companies will do well, with Toyota focusing on resolving some of its recent quality issues and GM working to improve its profitability.

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Gas Prices Jump 5 Cents in 5 days

By Brendan Moore

10.21.2007

The average price of a gallon of unleaded gasoline in the U.S. has jumped 5¢ since October 16. The sharp increase is directly attributable to the huge jumps in the price of oil (about $12 USD) over the last two weeks. The close of business on Thursday, October 18, saw a record price of more than $90 USD a barrel, although prices have since eased to around $88 a barrel.

Most analysts expect further short-term increases in the retail price of gasoline until the recent spike in oil prices is fully reflected in what consumers pay at the pump.

AAA says that drivers in the United States are paying an average of $2.81 a gallon for regular unleaded, $2.98 a gallon for medium-grade octane and $3.09 a gallon for premium gasoline. AAA compiles data from over 80,000 filling stations in the U.S. in order to come up with their national, regional, state and city pricing averages.

People in San Francisco were (of course!) paying the highest price at the pump; $3.17 for a gallon of regular gasoline. The lowest price in the country was in Newark, N.J., at $2.56 a gallon, and for those of you that have been in N.J. lately, you may remember 1) lots of “jug handle” traffic patterns, and, 2) the fact that there is no self-serve at gasoline stations, so that price seems even lower with that fact in mind.

Gasoline goes up when oil goes up. Will oil go higher?

The Bush Administration doesn’t think so, at least publicly. “It’s far too high and it would appear to be a reflection of inventories around the world,” said U.S. Energy Secretary Samuel Bodman to reporters Friday in Washington. “I’m hopeful that the exporters, both OPEC and non-OPEC, will take a hard look at it.”

Energy analysts are less optimistic. The U.S. dollar currently looks like a 98-pound weakling in the world currency markets and is still losing ground, fears of unrest in the Middle East have increased as of late, the appetite of developing nations like Russia, China, and India for crude oil keeps going higher, and now there are fears of a supply crunch this winter in North America. None of this will spur a reduction in oil prices anytime soon, and indeed, some analysts expect that we will see $100 a barrel by the end of November, if not sooner.

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UAW Deal with Chrysler in Serious Trouble

UAW locals rebel against the national organization

By Brendan Moore

10.21.2007

Final totals from the Chrysler-UAW voting won’t be known until next week, but the size of the locals voting down the agreement so far portends a very rocky road to approval for the labor agreement national UAW officials reached with Chrysler LLC.

Not only are large locals like Local 110 in Fenton, Mo., one of Chrysler’s largest, with 2,781 hourly workers at the South Assembly Plant, voting down the agreement, this particular local makes the brand-new minivan twins (Chrysler Town and Country and Dodge Caravan), which are expected to be sales leaders for the next five years, at least. This would seem to assure the Local 110 workers all the work they want over the next four years of the proposed agreement, so it is surprising to many that they would vote the contract down.

This does not bode well for the voting at UAW locals who work out of a plant that does not have a vehicle with a secure future. Ratification at those plants could be very much an uphill battle.

There seems to be a large groundswell of opposition to the agreement among the different UAW locals, and the internet has been burning up with the strident voices of the many UAW members that are against the plan. Additionally, the UAW’s national Chrysler negotiating chairman, Bill Parker, has made it very plain that he feels that Chrysler took advantage of the UAW in the negotiations and gave the UAW workers at Chrysler a much worse deal than what the UAW workers at GM received. One example of this inequity from the point of view of Chrysler’s UAW workers is the fact that Chrysler did NOT make a commitment to move production back to the U.S. from their Mexican plants, which is something GM agreed to in their agreement with the UAW.

If the UAW-Chrysler workers do ultimately vote the contract down, it will be the first time in more than 20 years that such a thing has happened. It will also mean the Chrysler LLC and the UAW will probably have to go back to the negotiating table, and if that happens, negotiations between Ford and the UAW will get pushed further back in the queue.

National and local union officials accuse the opponents of the pact of spreading disinformation and whipping up mistrust of the union’s leaders through selective reading of the new agreement. Many union officials say that a very small minority of dissidents within the union is behind the opposition to the agreement. “Frankly, many of these members wouldn’t be happy with any agreement that does not exactly match the ones we’ve had in place for the previous two contracts”, stated a local union official who did not wish to be identified.

Regardless of the mechanism used to foster dissent among the UAW members, the effort is working. What started out as a low rumble of opposition when the agreement was announced has now turned into a howl at some locals, and national union officials are furiously trying to tamp down the opposition to the contract before it turns into an even bigger fire. Union officials have spent the last week traveling to various locals in order to conduct information seminars, Q&A sessions, etc. in order to present what they feel is a good deal for the UAW. Only the results next week will provide the answer of whether they reacted quickly enough to quell the rebellion within their ranks.

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Porsche Storms “Supertest’

By Bruce McCulloch

10.19.2007

As if recent news of the Pagani Zonda F Clubsport completing the Nürburgring Nordschliefe in 7:27.82 (see here) wasn’t enough of a shock, earlier today German publication “Sport Auto” announced that in their monthly “Supertest” the recently released 530bhp Porsche 911 GT2 has completed the Nordschliefe in 7 minutes, 33 seconds.

Such a figure indicates a new echelon in Porsche 911 history. Not only does this particular lap time match what Sport Auto driver Horst Von Saumra was able to do in the Pagani Zonda F, but it’s just a tad whisker – 1 second, actually – behind that of the Porsche Carrera GT which completed the Nordschliefe in 7:32.44 back in early 2005. Thus also means the RWD 911 flagship out performs other such supercars as the 806bhp Koenigsegg CCR, the 640bhp Lamborghini Murcielago LP640 – let alone its normal competition such as the Lamborghini Gallardo Superleggera and Chevrolet Corvette C6 Z06. In short, thanks to regular testing at the ‘Ring and Porsche’s great attention to engineering detail, the heavier and much less powerful 911 has been able to annihilate most every car that has previously run in the Supertest – regardless of the power, weight and/or price.


And of course, the new GT2 was able to erase the previous fastest 911 lap time of 7:46 – set in 2002 – with the 996-generation of the GT2

Additionally, Sport Auto’s Supertest revealed the GT2’s amazing cornering abilities as it peaked at 1.35G’s through the corners, and more or less made runny eggs of the both the Porsche Carrera GT and Pagani Zonda F throughout both the 18 and 36 metre slalom course. And as per usual, the frenetic 911 did not fail to shock when it came to straight line performance, hitting 200 km/h (124 mph) in just 11.5 seconds and hitting an indicated 293 km/h (182 mph) on the Dottinger Hohe straight line of the ‘Ring; just 1 km/h (.62 mph) short of the Carrera GT and some 12 km/h (7 mph) faster than the Zonda F.

Suffice to say, Porsche engineers deserve mad props. With each and every successive generation of the 911, just when you think they’ve hit the peak, they manage to out-do themselves.

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GM Rides New Markets to Record Third-Quarter Sales

Toyota’s quarterly results due out Monday

By Brendan Moore

10.19.2007

General Motors had a record-setting third quarter from a global sales perspective, reporting unit sales of 2.38 million passenger vehicles on Thursday. Almost every bit of the increase (and therefore the record) came from sales in developing markets. Third-quarter sales in GM’s Latin America, Africa and Middle East regions were up nearly 22% to 329,400 vehicles. GM reported a 16% increase in its Asia-Pacific region to 327,500 units. Sales in Europe, including Russia, were up 15% at 523,600 vehicles.

Sales in North America declined 6% in the third quarter.

GM, locked in a battle with its arch-rival Toyota for the No. 1 spot in sales among auto makers, has been posting incredible growth in the rest of the world as it continues to get battered in its home market of North America. Toyota is scheduled to release their third-quarter results on Monday, and most analysts expect a very close race.

Toyota’s combined sales in its biggest markets — the U.S., Japan and Europe — fell 3.8 percent in the quarter.

Calculated on an annual basis, GM has held the No. 1 spot among auto makers for 76 consecutive years.

Toyota reported 4.72 million units sold worldwide in the first half of 2007, with GM nipping at their heels with 4.67 million vehicles sold in the same period.

GM’s new results push their sales for the first nine months of the year to 7.06 million units, which is a gain of more than 2% from the same period in 2006.

Besides the previously noted emerging markets, GM is extremely well-positioned in the red-hot Chinese market. Car production in China is growing so rapidly that it is set to overtake the US within a decade as the world’s largest market, and multinationals are flooding in to invest, but GM was there early, and has a commanding lead in China.

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Citroën Has a New C5

Citroën is launching a new C5 sedan in both Europe and China. The C5 is, appropriately enough, between the luxurious C6 and the more mass-market C4. Citroën intends for the C5 to compete with the Ford Mondeo, VW Passat and the Audi A4 in the European market. Citroën has high expectations for the second-generation C5, forecasting a 100% increase in the 70,000 units the C5 sold in 2006.

By Brendan Moore

10.27.2009

For our American readers, Citroën is the smaller sister brand of Peugeot. Citroëns have not been sold in North America by Citroën since 1974 when Citroën withdrew from the market. An independent distributor brought Citroen CX Prestige models into the U.S. for a short while after Citroën’s withdrawal from the market, but that effort was short-lived. Citroën still sells a large range of vehicles in other countries outside of North America. Some notable figures for Citroën in 2006:

2006 worldwide sales: 1,406,000 units, for a 0.8% rise
Market share in Western Europe: 6.5%
Sales outside Western Europe continue to grow: +15%
Successful Grand C4 Picasso launch with 24,000 sales worldwide
Citroën no. 1 in Spain for the first time

So, even though most Americans have never heard of Citroën, they are a player on a global basis.


The new C5 is longer and heavier than the model it replaces, has a trunk instead of hatch, which gives it a more formal sedan appearance, and it is also available with two different suspensions this time around, the Citroën hydraulic-type suspension and a conventional setup.

Renault, Citroën’s in-country segment rival in France, started sales of the third-generation Laguna on October 12. Renault has ambitious sales goals for their car in this segment as well.

Citroën says that the new C5 has both “racy and reassuring style”, which seems to be immensely contradictory, but maybe it makes more sense when you say it in French. Their target markets in Europe are Germany, the U.K., France, and the Northern European countries, and their target buyers are fleet companies (60% of this segment in Europe) and upper-middle class consumers.

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Daimler – The Forgotten Luxury Car

Jaguar’s dormant luxury marque

By Andy Bannister

10.18.2007

Mention the name Daimler to most luxury car buyers and chances are they will think of Daimler-Benz, manufacturer of Mercedes automobiles and formerly in bed with Chrysler.

Another unrelated Daimler exists in England, however, and some (though few) cars are still sold under that badge, but its existence is so obscure that most people are unaware of it.

This was not so once, for in its heyday Daimler of Coventry, founded in 1896, was one of Britain’s most noted manufacturers, supplying vehicles to royalty and the rich and famous around the world.

Trace the company’s lineage back far enough and its roots are shared with the German Daimler, although the separation took place long before Britain and Germany fought on opposite sides in the Great War which began in 1914. Interestingly there was also a third Daimler marque, Austro-Daimler, which lasted until 1934 before expiring in the face of recession in troubled Austria.


The British Daimler was part of the BSA group for many years and after 1930 took over the now-forgotten middle class Lanchester brand. At the end of the 1950s a series of miscalculations came home to roost for Daimler, epitomised by the SP250 roadster – sometimes known as the Dart. This odd-looking little car was a complete sales failure and its very existence must have bewildered the company’s salesmen at the time.

In 1960 Daimler was snapped up by Jaguar, a company then very much on the rise, with an image as dynamic as Daimler’s was old fashioned. Since then it has been a sub-marque of Jaguar, in much the same way Bentley used to be for Rolls-Royce, before the Bentley name became desirable and was sold off to become Volkswagen’s flagship brand.

Under private and state ownership alike, Daimler has remained deep in the shadow of its more sporting sister. Sales have ebbed and flowed, but no-one has really made a good case for what Daimler actually stands for.

The company is still best known for its staid saloons, particularly the stately DS420 Limousine, in production from 1968 right through until 1992. Although very clearly Jaguar-based this had the company’s last unique body and provided a visual link back to a much earlier era. These commanding cars are still a relatively common sight in the UK today ferrying brides to church, high court justices to their chambers, or – as hearse conversions – citizens to their final resting place.

In the 1960s, Daimler’s great little 2.5-litre V8 engine kept the marque’s individuality alive in plush versions of Jaguar’s small Mark 2. By the 1970’s and 1980’s, however, such engineering independence was dead.

Daimler offered models like the Sovereign and Double-Six, which were merely Jaguars for richer and generally older people. Aside from a slightly different fluted radiator grille and some tasteful extra bells and whistles, there was never really any Daimler identity, even after Jaguar escaped the clutches of British Leyland and rediscovered – for a while, at least – its flair for marketing and real export success in the USA.

In the 21st century Daimler has an ephemeral existence, sometimes visible, sometimes vanished. The current Daimler model is the Super Eight, a version of the long wheelbase XJ, although if you visit Jaguar’s UK website you won’t find it mentioned anywhere. Nor does it appear in Jaguar’s sales brochures, and it is unclear whether the model benefited from the XJ’s 2007 facelift or, indeed, is still in production.

It does, however, have its own reassuringly expensive looking leather-bound brochure if you can locate one in a showroom.

In the unlikely event of seeing one on the road its distinguishing features are so few that you are not going to be able to identify that it isn’t a Jaguar unless you get up very close. Which begs the question why does it still exist at all?

Jaguar’s current woes, exacerbated by the crippling value of the pound against the dollar, confused brand image and overly retro styling and interiors, means the future of the Daimler marque is even more of a sideshow than normal just now

If Ford successfully unloads Jaguar and the eventual buyer manages to turn Jaguar round, however, a Daimler revival remains an intriguing possibility if the new owners wanted to move upmarket and seriously challenge the likes of Bentley.

There are problems, of course, not least the lack of brand awareness in most markets, the confusion with Mercedes, and that funeral link. But Britain’s oldest marque is nothing if not a survivor and could yet have a surprise in store.

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Bring on the Volt

By Mike Mello

10.18.2007

Recently, I had the awesome opportunity of getting right up close to the Concept Chevy Volt. I was so close I could count the stitches on the custom-crafted, dark orange, brown, and cream-colored interior door skins. What’s even better is that the gentleman in charge of styling the Volt was there! Bob Boniface, who leads the designers who sketch and build all the Volt concepts was in Boston to speak to a small group of bloggers about just what GM was looking for when the Volt project got started.

In January, 2006, the GM design team was asked to start drawing up ideas for an electrically-driven car that had to achieve these three points:

  • Use zero gasoline in a typical commuting environment and be able to be recharged overnight by plugging in to a regular, 110 amp household outlet.
  • Deliver a driving experience that is new, completely enjoyable, but not too different from operating the regular kind of cars that people are used to.
  • Look great; be attractive to most people.

Early in the evening, I got to ask Boniface if any of the stylists who worked on the EV1 are working on the Volt team. Apparently, one EV1 stylist submitted a design for the Volt, but that design was not chosen as the final concept. 2006 must have been quite a whirlwind in the GM design studios because by the end of that year, the final Volt concept design was worked out and now two Concept Volt vehicles exist. Only one has a complete interior.

If and when the Volt goes into production, of course the wheels could end up being an inch or two smaller in diameter, the instruments may or may not end up closely resembling those in the recent Concept Camaro, but hopefully, the curved polycarbonate that makes that beltline really stand out will remain.

Perhaps the Volt is a bit aggressive looking right now? A number of car buyers certainly like the corporate face of contemporary Chevy vehicles with the two-tier chevron-style grille. I hope that if we see a final Volt, the look will not be too intense for families who want a plug-in electric vehicle. On the other hand, perhaps this kind of design is what it takes to attract people who might not be drawn to the looks of the former Insight or current Prius. Personally, I like the look of the Volt and enjoy the low roof, long hood, and overall stance.

In this YouTube clip, Boniface speaks in Boston about how his team worked out a mechanical issue involving the Concept Volt’s sharp, front door leading edge, its associated hinge, and the power plug outlet.

In a separate video on the GM FYI blog, Boniface discusses the Volt’s styling and the E-Flex Propulsion system.

In short, besides the styling, E-Flex is what sets the Volt apart from other alternative-fuel vehicles. The small gasoline/ehtanol/biodiesel-fueled engine powers the generator which recharges the battery pack. Only electric power drives the wheels. If you’re always able to plug in the Volt, you may never end up using any gas. Since the Volt can take you to work and home (up to 40 miles) on a single charge, the gas-powered generator is there to charge the battery pack if you want to take an extended trip. While nearing the end of the 40-mile electrical-range the gas generator automatically charges the battery pack, and can take you 600 additional miles before needing a fill up.

In terms of the wide range of potential Volt drivers, one of the lead electrical engineers from GM, Frank Weber, spoke about how the technology must be approachable to all people. As one would expect, the Volt would have all the contemporary electrical convenience features such as ports to plug in your iPhone , cell phone, GPS and so on. More important though is that even if you just get in your car and only listen to the AM radio while driving, the Volt must be able to perform this function while still being a pleasure to drive and easy to understand.

Weber also explained that the Volt driving experience, while obviously quieter than a regular car, would feature a system to let the driver know that the car is ready; that you wouldn’t get confused as to whether the vehicle was on or off or ready to operate. There’s not going to be any way to damage the car or battery if you jump in and go after it’s only been charging for an hour. In fact, the Volt’s electrical system is designed to deliver a consistent level of performance, whether it has been fully charged overnight, or has just been plugged in for one hour.

The only way to get stranded in the Volt would be if you had no fuel in the tank for the small engine that charges the battery pack and at the same time, you had run the battery completely down and were not near an electrical outlet.

Overall, whether you’re examining the Volt’s electrical system or its body style, GM wants the Volt to be easy and enjoyable to live with. Chevy dealers would already know how to handle the E-Flex system well in advance of a potential Volt debut. An interesting maintenance issue to think about is, what to do with fuel that’s been sitting in the tank for over a year if you only end up running the Volt on electric power? For now, I’ll be on the lookout for news that the battery technology has been perfected. That’s what I really want to hear.

Note: The Volt will be making its next eastern-U.S. stop in Miami and will then make appearances in San Francisco and Los Angeles in December.

Top photo from GM.com. All other photos by Mike Mello.

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Nissan GT-R Photos and Specs Released

By Chris Haak

10.17.2007

Another embargo bit the dust yesterday, when images of the December 2007 Motor Trend cover were leaked online containing the first undisguised photo of the 2007 Nissan GTR supercar, which was supposed to make its worldwide debut next week at the Tokyo Motor Show.

The car looks great – it does appear to have some odd angles and creases, but the styling clearly pays homage to Nissan Skyline GT-Rs sold in the past in Japan and elsewhere. Some have said that the shape of the headlights is a little too close to those on the last Toyota Celica, and that the taillights are too similar to a Corvette’s four circles. Nissan GT-Rs have had four round taillights for decades, though. Still, the car doesn’t strike me as classically attractive as a Corvette or Porsche 911 does.

The real beauty of the GT-R, however, lies under the skin. The car is powered by a twin turbocharged 3.8 liter V6 pumping out 473 horsepower and 434 lb-ft of torque. The only transmission is a rear-mounted six speed dual clutch unit backed by leather-covered aluminum shift paddles. Oh, and the car has all wheel drive with the capability of diverting up to 98% of torque output to the rear wheels under hard acceleration, and a 50/50 split at low speeds. While Nissan’s other V6 engines are in the VQ family, the GT-R’s new V6 introduces the Nissan VR family of engines.

The car’s published performance data (which hasn’t been independently verified at this time) include a top speed of over 190 miles per hour and 0-60 miles per hour in 3.5 seconds. Supposedly, it can also keep up with a Porsche 911 Turbo on the Nurburgring Nordschleife. These are absolute supercar numbers, and very exciting for any automobile enthusiast, because competition improves the breed. On paper, the GT-R seems to give the Chevrolet Corvette Z06 – my favorite car sold today – a run for its money in terms of performance for the dollar. While the Z06 has more horsepower and more cylinders, it also lacks the GT-R’s all wheel drive and back seat, while being offered for a similar price (“under $80,000,” according to Nissan). The car goes on sale in Japan this fall, and in the US in Spring 2008. Finally, it will land in Europe in the summer.

Inside, the interior is very businesslike and features a leather wrapped dashboard and door panels and full instrumentation – including an ancillary gauge display on the center navigation screen.

Even though I am a huge Corvette enthusiast, I can’t wait to see the first comparison test between a US-spec GT-R and the Corvette Z06. If the GT-R does manage to unseat the Z06, it will be interesting to see GM’s response, which may take the form of the upcoming supercharged Corvette ZR-1.

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Toyota Is Not Having a Good Time

The bad news keeps coming for Toyota

By Brendan Moore

10.17.2007

Since you read this blog, you probably already know that Toyota took a shot to the temple yesterday when Consumer Reports stated that the Camry V6 and the Toyota Tundra are now rated below average in reliability, and further, the Lexus GS, an upscale clone of the Camry, was also rated below average. Additionally, this caused Consumer Reports to withdraw their long-standing “recommend” buy rating on all Toyota cars and trucks.

Wait, there’s more.

Toyota has lost three high-ranking U.S. executives to other car companies recently, they have sustained withering criticism in the past few weeks from environmental groups as a result of their opposition to a bill in the Senate that would require all vehicles sold in the U.S. to get 35 mpg by 2020, and their U.S. sales numbers have dropped for three straight months in a row.

Has the world turned upside down?

Toyota has had everything go their way for so long; it’s all been one long joyride for the company in the U.S. since the Seventies, and it seems almost implausible that they are now experiencing difficulties. And yet, here we are.

Is this a hiccup or the start of a long trend? It’s hard to say – General Motors had a 50-year run of good times until, coincidentally, the Seventies, and then three decades of decline that started with a whole lot of consecutive hiccups. They are just now climbing out of that hole.

It is worth noting that Toyota is managed better now than GM was then, but sometimes events have a way of transcending other attributes.

Stay tuned on Toyota.

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