Odds and Ends About Cars and the Car Business

By Brendan Moore

08.24.2008

TATA says that continued violent protests at the East Indian factory that is scheduled to start churning out the $2500 Nano may force the company to move the plant elsewhere in India. The protests are not new as Tata has been bearing the brunt of the locals’ anger in the area for sometime now. The dispute centers around the farmland gobbled up by Tata for the production facility. India still has a tremendous population of rural poor people who make a meager living from the land, and these people are unhappy that private farmland was simply taken over by the government and then transferred to Tata for the plant. The government offered what was considered by most observers to be fair compensation, but the farmers displaced by the land grab are still very unhappy and some of them have refused the compensation offered by the government. Tata states that their primary concern is the safety of Tata personnel, and that opponents of the factory are sorely mistaken if they believe that Tata won’t abandon their investment in the factory in order to move the factory somewhere else where their employees would be safe. Of course, anything along that course of action would have to delay the launch of the Nano, which is extremely important to Tata, so it remains to be seen if Tata is bluffing in this regard.

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By Jason Lu

08.22.2008

Amidst high fuel prices and economic troubles, the American market is changing as quickly as you can say “Pain at the Pump” or “Credit Crunch”. Owners are ditching gas-guzzling SUVs and swapping them for fuel-sipping cars, which is a plus for automakers that have several small, fuel-efficient vehicle offerings. Others who have depended heavily on their arsenal of full-sized SUVs and pickup trucks are taking the blow with their market shares shrinking and their customers flocking to other brands. American car-buying habits are changing, no doubt about it, and they are changing fast. Automakers are naturally taking note of this, so in response, many have decided to replace nearly their entire lineups. There is however, one statement that really caught my eye when I did research for a Ford article: “North American and European consumer tastes and requirements are converging”. Could it be true that we may one day mirror the European car market? Would we be able to see Peugeots and Skodas parked alongside a Mondeo? What about Toyota’s success in the U.S. market?

Beginning in the 1990s, Americans had been in love with SUVs and overly-large vehicles. Gas prices hovered around a dollar a gallon while a typical SUV, getting 15 miles per gallon, was the ideal transportation for the soccer mom, her kids, her kids’ friends, and the dog. The daily routine included taking the kids to school, going to work, buying groceries, picking the kids up from school, taking them to soccer practice, stopping at Starbucks, and so on. In short, life revolved around driving, cheap gas, and big cars. Those were the golden years of the Detroit Big Three; Explorers, Durangos, Tahoes, and Yukons were at the top of most buyers’ shopping lists. Market shares for domestic automakers were still relatively high and there wasn’t enough competition in their end of the market to necessitate concerns about innovation or quality. In fact, Peugeot had just been kicked out of the market, and the Japanese were too insignificant to be a threat. Brand loyalty was the key to success in the 1990s, although Honda, Nissan, and Toyota were steadily swallowing market share throughout the decade. Continue Reading

By Kevin Miller

08.22.2008

Citroën will debut their redesigned C4 at this month’s Moscow Motor Show. The C4, which launched in late 2004 as a hatchback and coupe, has been a successful vehicle for Citroën, selling nearly 900,000 units worldwide since its introduction.

Among the changes made to the redesigned C4 are styling tweaks to strengthen the car’s successful design, efficient powertrain options, and new telematic equipment. Underhood, the C4 is now available with two new gasoline engines co-developed with BMW, and two HDi diesel engines. The array of telematics equipment includes MyWay, a new navigation system with Bluetooth connectivity which can also be connected by USB to portable audio equipment. Changes to the interior include new upholstery and addition of a tachometer to the display in the middle of the dashboard. Continue Reading

By Jason Lu

08.22.2008

Sales are down, massive losses have been reported, and auto workers are clinging onto their jobs with low morale, not knowing whether their positions may be the next to hit the chopping block. It is not news that the American auto market is in a state of ill health. Things have to be pretty grim for a car company when it has to convince its own employees that their product can keep up with competition.

Ford Motor Company has been going through a financial roller coaster ride as it struggles with a turnaround during one of the toughest periods of its century-long existence. After a series of layoffs and salary cuts, some employees are not exactly confident about their future. Even Richard Gresens, the designer of the Ford Flex, was given cardboard boxes and shown the way out. “There’s obviously some worry,” says Sejal Shreffler, a product creation worker.

To boost morale, Ford invited 4000 workers to leave their desks behind in Dearborn and head off to the track for a little demonstration. Displayed for employees were several vehicles that Ford hopes will rescue the company from its woes. To begin their tour, Ford split their employees into groups and ushered them into tents, where engineers briefed them on features that will set Ford vehicles apart from its rivals. Continue Reading

By Jason Lu

08.21.2008

Ford has done it and so has Chrysler. Automakers are saying good-bye to gas-guzzlers and retooling plants for small vehicles. Now in the wake of a small-car battle, the Big Shots at General Motors have decided that $500 million will be invested in the U.S. for Chevy’s all-new, global Cruze. After indulging on some official photographs of the Cruze, shown in an earlier post, I have to say, this investment is worth every penny.

The majority of the money will be spent on the production of the Cruze at GM’s Lordstown, Ohio plant, which will take place next to the Cobalt and the G5 until those are phased out. “Based on the quality of work [at the Lordstown plant], we are pleased to announce our plans to invest another $500 million in the Chevy Cruze product program in the U.S., including more than $350 million in Lordstown.” This move brings the total investment in Ohio to more than $2 billion for the past five years. The United States as a whole has received more than $20 billion of investment in the same time period.

The Chevy Cruze, designed not by Americans, but by Asians and Europeans, will “build on the already successful Chevrolet Cobalt, Cobalt XFE and Cobalt SS, all of which are nearly sold out in dealer showrooms.” Despite a 16-percent rise in year-to-date sales for July 2008, the Cobalt is understandably not the best product in its class. Thankfully GM will strive to “continue the attention to quality, fuel efficiency, and strong value promise of the highly successful Malibu and all other vehicles under the Chevrolet brand.” From the looks of the Cruze, GM does not seem to be lying. The car not only incorporates Malibu design themes, but takes what are already handsome elements and makes them downright sexy with an aggressive grille that appears to be even better looking than its big brother’s. From some angles, there are even hints of Audi, which is a good thing. We have not seen pictures of the interior (other than a few spy shots), but after experiencing the class-leading Malibu’s, we shouldn’t be too concerned. Continue Reading

By Chris Haak

08.21.2008

Yesterday, Hyundai announced that it expects to sell 50,000 Genesis sedans and coupes annually, although its specific projections for 2009 have not been finalized. The Genesis sedan, which Hyundai is marketing as a competitor to the BMW 5-series, while pricing it thousands less. The Genesis Coupe has not launched yet, but will be slightly smaller, and will feature a range of engines from a turbocharged four cylinder to a 300-plus horsepower 3.8 liter V6, and will be priced far lower than the $33,000 entry point for the sedan. The Genesis coupe will be positioned as a competitor to the Mustang, Challenger, and 350Z.

Hyundai expects to sell 8,000 Genesis sedans during 2008, and the coupe will be launched in the first quarter of 2009. I find it curious that Hyundai chose to apply the Genesis name to both the sedan and coupe, because although they share the same basic architecture, they are in fact very different vehicles. The coupe is not a two-door version of the Genesis sedan, but is more of a larger rear wheel drive successor to the Tiburon coupe (although the Tiburon will likely be replaced in the next few years by a new front wheel drive vehicle at a lower price point than the Genesis coupe will be priced at). Continue Reading

By Andy Bannister

08.21.2008

As Ford gears up to launch its biggest and most ambitious Fiesta ever, let’s pause a while to remember the 1976 original which spawned this global phenomenon.

A dainty little three-door which still manages to look good today, the Fiesta Mark 1 was a revolutionary car for the Blue Oval in Europe. It even briefly made it across the pond to North America.

Numerous Fiesta generations have come and gone since then, and the nameplate has sold over 10 million units in total, but nowadays it is just another hatchback in a huge pack of competitors. In contrast, the original Fiesta, while not the first car of its type, was undoubtedly one of the most influential.

The idea of the small hatchback – generally called a supermini – was pioneered in Europe in the early 1970s, with the first models to taste wide commercial success being the Fiat 127 and Renault 5. Both of these were stylish little cars which burst onto a market previously dominated by rear-engined competitors and boxy economy offerings with homespun looks. Continue Reading

By Kevin Miller

08.21.2008

GM has released details and photos today of the Chevrolet Cruze, its all-new small car which will debut in October at the Paris Motor Show. GM describes the vehicle as a “dynamic four-dour coupe”, using the already-tired vernacular of more expensive four-door sedans masquerading as coupes. Regardless of how its styling is described, the Cruze is certainly better looking than the Cobalt which it will replace in the US, and the Lacetti it will replace in Europe.

Although photos of the interior were not available, the dash is described as a “twin cockpit” design. Such a design theme is used in the interior of the current Malibu, where it is attractively implemented. Interior materials are said to be nicely grained, soft-touch, and low gloss, which will be an improvement compared to the vehicles the Cruze replaces. Continue Reading

Small car, big carrying capacity

By Brendan Moore

08.21.2008

If we (the American car-buying public) continue to shun SUVS, the next logical step down in size are the crossovers. Almost everyone that bought an SUV didn’t need a vehicle that large, and now the question is whether buyers now believe they need something the size of a crossover. I am testing a crossover right now, and believe me, it’s still a very large vehicle.

For people who decide that a new crossover is still too much vehicle for them, there are cars like the Pontiac Vibe AWD, which I had on loan from GM last week. The Pontiac Vibe is the platform cousin of the Toyota Matrix, which itself is merely a station wagon version of the Toyota Corolla. Both the Vibe and the Corolla are built at the NUMMI plant Toyota and GM share in California. As you know, the Toyota Corolla from whence the Matrix and Vibe spring from is not a large car, in fact, it’s a small four-cylinder economy car.

But the Pontiac Vibe is not a small car inside.

The tall roof and large glass areas in the Pontiac Vibe give the occupants a feeling of spaciousness. There is ample interior room and the large hatch in the rear, combined with the rear seat folding down flat, gives the Vibe excellent cargo capacity (1399 cu ft). In fact, during my time with the Pontiac Vibe, I needed to take my big cruiser-style bike over to the bike shop for some regular maintenance, and I was able to fit the whole bike in the back of the Vibe without taking the front wheel of the bike off. And I didn’t have to push the driver’s seat up, either. I was surprised, to say the least. The cargo area just didn’t look that big. Continue Reading

By Roger Boylan

08.20.2008

The Chrysler Sebring drop-top has been the top-selling convertible in the United States for seven of the past 12 years. I understood why as soon as I got behind the wheel of the gold (Linen Gold Metallic Pearlcoat, in Chryslerspeak) Touring model provided for me for a week’s evaluation by Chrysler’s press fleet. This car’s raison d’être is luxury on the cheap, Veuve-Cliquot on a Coors budget (well, maybe Guinness). Hence its popularity at rental counters in the airports and hotels of middle-class vacation spots, a popularity that has become a stigma for the hardcore gearhead contingent. Which is all very well; I like a sporting burst through the twisties as much as the next fella. But sometimes, while enduring the penance of my daily commute, all I want is a good comfortable machine that drives well without a fuss and gets good mileage. I found one here. The Sebring convertible is an undemanding, solid performer, with a certain style. Not a style to everyone’s taste; what is? But to my eye, it has a hint of European flair, or eccentricity. I was unsurprised to learn that the famed German coachmaker Karmann (of VW Karmann-Ghia fame) had a hand in the design, back in the halcyon days of the Benz-Chrysler marriage. I also fancied, wistfully, that I saw hints of a Gallic touch in the car’s lines. Citroen came to mind. Panhard, too, if they were still around, might design cars like this, alluring to some, anathema to others. True, as with the design of the old Panhards, not everything works harmoniously together. From certain angles, notably the front three-quarter view, the Sebring convertible has an odd, almost disjointed look, and I could live without the hood strakes. They recall the old Citroen 2CV and (more aptly) the late unlamented Chrysler Crossfire. But stand alongside and take a good look and things improve. The cut lines on the flanks serve to visually elongate the car (which is actually 3 in. longer than the sedan), and the absence of rear doors endows the drop-top with a sleekness absent in its slightly bulbous four-door sibling. All in all, from most angles this car looks muscular, elegant, and more expensive than it is. And from any angle it’s hard to mistake the Sebring for anything else, an advantage in itself in today’s marketplace of Asian lozenges on wheels. Continue Reading