Archive | September, 2008

Check Your Mirrors

Check Your Mirrors

Odds and ends about cars and the car business

By Brendan Moore

09.22.2008

WALL STREET woes are probably going to affect Main Street in regard to auto sales. Both consumer and commercial credit is tightening considerably. Consumers are having a tougher time getting approved for auto loans and auto leases are getting scarce. The buyers that do get approved are not getting the same sort of terms that they were getting a year ago from the banks and the captive finance companies because their cost of funds is much higher. Furthermore, the costs associated with inventory financing at the dealerships have risen substantially, which translates into the dealer needing more profit on each vehicle in order to cover his operating costs. This makes the average purchase price higher. What all this means is that fewer prospective buyers are getting approved, and a smaller percentage of those that do get approved can actually afford the payments. Take this one more step further, and you can see why some auto analysts are saying that 2009 will be an even worse year for auto sales than 2008 is shaping up to be.

FORD says that even in a slowing European economy, it expects to sell more of the new Ford Fiesta than the outgoing model. Ford is forecasting sales in excess of 400,000 units in Europe for the new car, the sixth-generation of the Fiesta. Ford sold 378,200 units of the outgoing model last year in a much healthier economy. “The last Fiesta was a great success but we will improve annual sales with this model,” Ingvar Sviggum, head of sales for Ford of Europe, stated. Sviggum noted that the Fiesta buyer population is very loyal to the model, and further, that there are a lot of them. Over 12 million people have bought a Ford Fiesta since the model was launched in 1976. The new model is very attractive and Ford expects to get quite a few conquest buyers from other cars in the segment as well. The new Fiesta launches in Europe over the next few months and is slated for North American sales in 2010, with production for the North American market sourced from Ford plants in Mexico. The launch of the 2010 Ford Fiesta is eagerly anticipated by some consumers and by Ford of North America itself. Continue Reading →

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Toyota Considers Building Compact A-Bat Pickup, Shelves Light Duty Diesel for Tundra

By Chris Haak

09.22.2008

This past January, Toyota showed its A-BAT compact unibody pickup truck at the Detroit.  A-BAT is an acronym for Advanced Breakthrough Aero Truck, and the truck was similar in style to the Honda Ridgeline (currently the only other unibody pickup on the market), but is substantially smaller than the Ridgeline.  The A-BAT would be powered by either a hybrid powertrain or a four cylinder engine.

At the time the concept was shown, Toyota indicated that the truck did have the potential of future production; based on the fairly conservative styling (for a concept vehicle), that’s not surprising.  Toyota, being its pesky fiscally-disciplined self, however, has to ensure that there is a viable business case for the A-BAT before committing it to future production.  Supplier sources have said (and Toyota has confirmed) that Toyota has asked them for bids on components for the compact pickup, with the caveat that if costs prove too high, the product could be shelved or scrapped.

The idea of a true compact pickup – aside from the antediluvian Ford Ranger, which received its last complete overhaul for the 1993 model year (and will be 18 years old when it finally kicks the bucket for the 2011 model year) – certainly has a fair amount of appeal in these fuel cost-conscious times.  The Ranger is currently the most fuel efficient pickup on the market, but a four cylinder A-BAT could easily surpass the Ranger’s numbers with a four cylinder powertrain, thanks to its lighter weight (unibody construction) and superior aerodynamics.  Were the A-BAT to add a hybrid powertrain (rumor is that if it did, it would lift the Camry Hybrid’s 2.4 liter four cylinder and associated hardware), it would slay all pickup comers in terms of fuel efficiency. Continue Reading →

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2008 Saab 9-3 Aero Convertible Review

By Kevin Miller

09.22.2008

From reading my review of the Saab Turbo X, you may recall that I am a Saab fanatic. I remember when I saw my first Saab convertible- I was in middle school, in the late 1980s, and the vehicle was at once so yuppie, stylish, pretentious and unobtainable that I knew I someday had to have one. In the twenty years that have passed since, I have driven a handful of Saab convertibles on test-drives and overnight trials, but I have yet to own one. When I learned I would be reviewing a 9-3 Aero convertible for a week, I was elated. Perhaps I built it up so much in my mind, that the car was bound to let me down in real life. Or perhaps it would live up to every expectation. Only a week spent with the car would be able to determine which of those is the case.

My test vehicle was a 2008 9-3 Aero convertible, in Snow Silver Metallic with a Sand ragtop (which didn’t match the silver exterior very well in my opinion). Standard equipment on the Aero includes the 2.8L 6-Cylinder, turbocharged with 255hp, a 300 W, 10-speaker audio system with AM/FM/XM stereo with in dash 6-disc CD changer and AUX input, lowered, sport-tuned chassis, dual exhaust with bright-finish tailpipes, swiveling Xenon headlamps, front and rear fog lamps, leather-trimmed Aero sport steering wheel, and 17-inch, 5-spoke low-split alloy wheels. Continue Reading →

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Chrysler Promises Electric Car in 2010

Let’s hope it shares nothing with Chrysler’s GEM lineup

By Chris Haak

09.22.2008

Chrysler LLC, under assault for questionable quality, questionable finances, and a questionable (truck- and gas guzzler-heavy) product mix, plans to announce an electric vehicle at a webcast for dealers on Tuesday.  While news of the announcement leaked out over the past few days, word also came out that some dealers had been given preview drives in prototypes of electric cars.  Aside from this evidence, Vice Chairman Jim Press said last month that Chrysler would launch seven new vehicles in 2010 – far more new models than most had expected, which means that Chrysler had some surprises up its sleeve over the next two years.  Or, it could be a simple matter of counting line extensions such as a Ram Hybrid as a “new model,” which certainly would be a stretch to label it as a new model.

Chrysler showed three electric vehicle concepts at the 2008 NAIAS in Detroit this past January, so it’s possible that the vehicle to be shown to dealers on Tuesday (which will surely be leaked on the Internet within hours, if not minutes, even if it’s not officially sent to the media) could be a production version of the Chrysler ecoVoyager, Jeep Rampage, or Dodge ZEO – or a completely new vehicle we’ve never seen or heard of before.

Last week on the Charlie Rose Show, Chrysler LLC CEO Bob Nardelli said that he was confident that his company would be as competitive as GM in the electric vehicle space, mentioning that his company has been producing electric vehicles for 10 years with its GEM subsidiary, so they have all of the fundamental technology necessary for an electric vehicle. Continue Reading →

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Audi Backs Travolution Test to Synchronize Cars and Traffic Lights

By Chris Haak

09.22.2008

Audi announced that it has thrown its support into a project called Travolution to facilitate communication between specially-equipped vehicles and specially-equipped traffic lights to conserve fuel and reduce driving times.

The system works by allowing traffic lights in the vicinity of a vehicle to transmit messages to cars in the vicinity, alerting them to how much time remains until they turn green.  For its part, the car will then provide its driver with the precise speed she must travel pass through the light while it is green, displayed on the car’s navigation screen.

The test network is installed in Audi’s home city of Ingolstadt, with 46 of the special traffic lights installed so far that are linked together in a network to coordinate their phasing, while three of the 46 lights have been upgraded at this point to communicate with the special Audi A6 Avant and A5 models provided by Audi as part of the project.  Eventually, 20 additional cars and 50 additional traffic light installations will be incorporated into the project. Continue Reading →

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2008 Mini Cooper Clubman Review

By Chris Haak

09.19.2008

Would you pay $30,000 for an economy car?  How about $30,000 for a small car that happens to be economical?  The 2008 Mini Cooper Clubman that I’ve spent the past week with had an MSRP of $29,700, but unlike most small cars, had very few parts inside that I’d call ‘cheap.’  In fact, it had some features that I’d call upscale, such as leather seats, an oversize sunroof, and LED accent lighting.

In our current environment of unprecedented (until this year) high fuel prices, with new car buyers in the US suddenly considering small cars (and trading in full-size pickups and SUVs to buy one, in some cases), it stands to reason that buyers accustomed to luxury features such as leather seats, navigation systems, and premium stereos will not want to forego the availability of those options when downsizing their daily driver.  Premium small cars are probably one of the next big growth segment, on the heels of the compact luxury crossover segment (Acura RDX, Mercedes-Benz GLK, BMW X3, Infiniti EX35, etc.) that has grown briskly as buyers have migrated from larger crossovers and SUVs. Continue Reading →

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Pontiac Launching “Aveo-Fighter” G3 In US

This Badge-Engineered Hatchback Unwittingly Showcases the Problems of GM’s Divisional Structure

By Kevin Miller

09.18.2008

A press release today claimed “Pontiac Announces New Small Car for U.S. Market.” The release went on to describe the “sporty, five-door hatchback G3″. The thing is, the G3 is not new to the US market. It is already sold at Chevrolet stores as the Aveo5, and is also sold in Mexican and Canadian markets.

“The small car segment has literally exploded in recent months, with sales up nearly 33 percent in the first six months of 2008 alone,” said Susan Docherty, vice president of Buick-Pontiac-GMC. “The Vibe, G3, G5, and G6 prove that you don’t have to sacrifice sporty design and responsive driving to achieve impressive fuel economy.” I would say that the G3 subtracts credibility from Pontiac as GM’s “performance” division. And as for fuel economy, goes, the G3 isn’t really that impressive. Continue Reading →

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Finally Official: Saab 9-X Air Concept

By Kevin Miller

09.18.2008

While information about the Saab 9-X Air Concept leaked out onto the internet earlier this week, today is the day it is officially unveiled. After patiently waiting, here are the highlights of the 9-X Air Concept, an open-top Saab concept car which will make its debut next month in Paris.

The 9-X Air is essentially an open-roof version of Saab’s earlier 9-X BioHybrid Concept. The exterior of the 9-X Air is defined by the prominent buttress C-pillars which provide the rear mounting for the unique Canopy Top – a powered, flat-folding Targa-type roof. Saab has applied for a patent for this roof system. The Canopy Top is constructed from fabric, rather than metal, to save weight and provide more efficient packaging. Operation is fully automatic, and the top folds in three sections under a tonneau cover in the rear deck. Continue Reading →

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Mercedes-Benz S 400 BlueHYBRID

By Kevin Miller

09.17.2008

Mercedes-Benz has released information today about its upcoming S 400 BlueHYBRID sedan. Based on a modified S 350 drivetrain, the S 400 BlueHYBRID empolys a combination of a modified V6 gasoline engine and a compact hybrid module, making it the world’s most economical luxury sedan with a gasoline engine. The 3.5-liter V6 develops 279 HP, and the electric motor generates 20 HP with a starting torque of 118 lb-ft. The combined output is 299 HP with a combined maximum torque of 283 lb-ft. The S 400 BlueHYBRID accelerates from zero to 62 MPH in 7.2 seconds, and reaches an electronically governed top speed of 155 MPH.

The European combined fuel consumption rating is 7.9 liters per 100 kilometers (29.7 MPG), compared to the 23.3 MPG combined rating of the standard S 350. It also boasts the world’s lowest CO2 emissions in this vehicle and performance class, emitting just 190 grams per kilometer. The hybrid system adds a reasonable 75 kilograms (165 lbs) to the standard S 350. Mercedes-Benz’s first hybrid will launch in Europe in the summer of 2009, followed by a US launch in September 2009.

The S 400 BlueHYBRID is the first series-production vehicle to be equipped with a lithium-ion battery developed specifically for automotive use. Combined with modifications to the existing V6 engine, the BlueHYBRID system uses a magneto-electric motor, 7G-TRONIC seven-speed automatic transmission specially configured for the hybrid module, high-voltage lithium-ion battery and transformer, plus the necessary operating and control electronics. Continue Reading →

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Tesla Sedan Production Will Be In San Jose

By Brendan Moore

09.17.2008

Tesla received final approval Tuesday of a deal with the city of San Jose in Northern California to lease almost 90 acres of city-owned land for a production facility to build their USD $60,000 Model S, an all-electric sedan.

Chuck Reed, the mayor of San Jose, stated that the lease is a long-term agreement, with a built-in waiver on the first 10 years of lease payments. Reed said the northern California town in the heart of Silicon Valley known worldwide for technology would be home to the factory and was moving quickly toward being the go-to place for so-called clean tech. “We want to be a world-class center of clean-tech innovation, and this fits into our strategy to do that,” Reed said. “We hope to be the home of the electric car like Detroit was for the internal-combustion car.”

The city of San Jose has an ambitious goal of creating 25,000 jobs in what it has identified as the “clean technology” sector in the next 15 years. City planners see the sector as high-growth and wish to establish themselves as one of the locations of same. Continue Reading →

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