Archive | November, 2008

The Cost of GM’s Death

By on November 14, 2008 in Editorials

We are posting this editorial from Automotive News, an auto industry publication, with their full consent and permission. This content is protected by the full force of copyright law and Automotive News retains all rights to the reproduction of their content.

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AUTOMOTIVE NEWS EDITORIAL

The cost of GM’s death

Automotive News | November 14, 2008 – 12:28 pm EST

If Congress thinks a bailout of General Motors is expensive, it should consider the cost of a GM failure.

Let’s be clear. The alternative to government cash for GM is not a dreamy Chapter 11 filing, a reorganization that puts dealers and the UAW in their place, ensuring future success.

No, even if GM could get debtor-in-possession financing to keep the lights on (which it can’t), Chapter 11 means a collapse of sales and a spiral into a Chapter 7 liquidation.

GM’s 100,000 American jobs will die. Health care for a million Americans will be lost or at risk. Hundreds of GM’s 1,300 suppliers will die. Their collapse could take down Ford Motor Co. and Chrysler LLC, perhaps even North American transplants. Dealers in every county of America will close.

The government will face greater unemployment, more Americans without health insurance and greater pension liabilities. Continue Reading →

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TrueDelta Releases Vehicle Reliability Survey Results

By on November 14, 2008 in News

By Michael Karesh

11.14.2008

At TrueDelta, once three months have passed, it’s time for a new set of Vehicle Reliability Survey results. The November set includes 179 car models, plus another 173 with marginal sample sizes.

The November results include a new quick indicator for reliability in the form of a traffic light. The actual repair rates continue to be posted, but numbers aren’t as easy to read at a glance as a clear graphical symbol. And what’s clearer than a red light?

Given the typical quality of today’s cars, there aren’t many red lights in the latest results. But there are a few. Compared to three months ago, the 2008 Cadillac CTS and 2009 Jaguar XF have improved, but not nearly enough to avoid a red light. The Cadillac requires about twice as many repairs as the average car, the Jaguar about three times as many.

The 2009 Dodge Journey isn’t faring as badly as Chrysler’s 2008 minivans, but it’s still over twice the average. Red lights for both. Continue Reading →

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Special Edition Saab 9-3 Convertible Bound For LA

By on November 13, 2008 in Editorials, News

Another Year, Another Special Edition 9-3 Convertible

By Kevin Miller

11.13.2008

Saab has announced they will show a special edition 9-3 convertible at the LA Auto Show this month, which is expected to be available at Saab’s remaining US dealerships in January. This special edition comes twenty-five years after the first ever Saab convertible made its world debut at the Frankfurt Auto Show in the fall of 1983- and just two years after the last Special Edition 9-3 Convertible, which commemorated Saab’s 60th Anniversary.

The 2009 Saab 9-3 2.0T Special Edition Convertible will be showcased in a signature bright champagne metallic color. The vehicle will feature Saab’s 2.0-liter, 210 hp four cylinder engine which can be mated to six-speed manual or five-speed automatic transmissions.

The special edition 9-3 Convertible will be available in three metallic colors: Jet Black, Carbon Grey and the new Bright Champagne. The vehicle features styling cues from the Turbo X, including the design of the front bumper and steering wheel plus carbon fiber interior finishes and black floor mats with gray binding. Like the 9-3 Aero, the rear of the special edition convertible features dual exhaust pipes (a first for four-cylinder 9-3 models) and an anthracite gray bumper insert. Five-spoke, 17-inch alloy wheels will be standard. The Saab 9-3 2.0T Special Edition Convertible will be priced starting at $ 46,725 including destination charges.

The LA-bound convertible is similar in appearance to Australia’s Spring Edition 9-3 convertible which made its world debut in Melbourne earlier this month, featuring the same signature colors and carbon fiber trim. Continue Reading →

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Blue Velvet: BMW Releases Pricing and Info for BluePerformance Diesels

By on November 13, 2008 in News

By David Surace

11.13.2008

This week, BMW revealed some key information about its new clean diesel products to be sold in North America, and held an online press conference to answer a few questions about how BMW plans to market its twin-turbo oil burner, BMW’s first diesel offering in the States in 22 years.*

It bears noticing that this follows fresh on the news that Honda and Acura are getting cold feet about their own clean diesel initiative, and considering holding off the release of its i-CTDi-equipped Acura TSX. (source: Automotive News, sub req’d.)

First on the list, and the main crux of the press release issued the same day, is pricing for the two new models on offer, the 335d ($44,725) and x5 xDrive35d ($52,025). For both models, the diesel represents about a $4000 premium over its gasoline counterparts, which turns out to be a fairly thick stack of lettuce compared to what other diesel-loving consumers are being charged ($2000 extra for the Volkswagen Jetta TDI, and a scant $1500 extra for the Mercedes ML320 CDI, both figures from this morning’s Automotive News article, sub req’d). Bearing in mind that diesel fuel is more expensive than gasoline by a country mile in the States, this sounds like a raw deal, but BMW insists that its fuel consumption savings (roughly 30% over its petrol counterparts) might just be worth it.

Continue Reading →

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Buy an iPod Touch, Get a Free Ferrari

By on November 12, 2008 in News

By Chris Haak

11.12.2008

Ferrari has just revealed its open top 430 Scuderia Spider 16M, which features a 510 horsepower 4.3 liter V8 and six-speed F1 paddle shift transmission.  The Scuderia Spider is a full 176 pounds lighter than the standard F430 Spider, and is capable of accelerating from zero to sixty in just 3.7 seconds.

The 16M part of the car’s name comes from the commemoration of Ferrari’s 16th Formula 1 victory in the Constructor’s World Championship.  The limited edition car (one of just 499 built) includes a special rear grille plaque commemorating the occasion.  Most interestingly, however, is that each of the 499 cars include a limited edition iPod Touch that comes pre-loaded with Ferrari images and engine sounds.  The car has a special docking port built right into the center stack for the iPod Touch to seamlessly integrate the music player into the car’s interior.

Pricing for the limited edition Ferrari-branded 16 GB iPod Touch begins at around $280,000, but does include a very exclusive Ferrari automobile in the price, one that is available in either a standard black exterior color scheme or a three-color theme offered as part of the Carrozzeria Scaglietti personalization program. Continue Reading →

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Mini-Moke – the Little Car That Refuses to Die

By on November 12, 2008 in Features

By Andy Bannister

11.12.2008

One of the iconic cars which recalls the “flower power” era of the swinging ‘sixties – the Mini-Moke – is back in production, this time (almost inevitably) in China.

It’s nothing to do with BMW, however, which has gone in a very different direction with the revived Mini brand. The latest version of the classic Moke is the product of Chongqing Big Science & Technology Development Ltd.

The Chinese firm, which already has motorcycles in its product portfolio, makes a surprisingly wide range of Moke models with modern fuel injected engines, featuring 800cc, 1100cc and 1300cc versions, as well as an electric derivative (the Chinese Moke lineup is pictured here).

The original Moke, a car with almost no body panels to speak of, was a spin-off of the wildly successful British Motor Corporation Mini, and was actually conceived as an ultra-light military vehicle. Continue Reading →

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The Scion xB Through the Eyes of its Target Customer

By on November 11, 2008 in Reviews

By Jason Lu

11.11.2008

Members of Generation-Y, or the Millennials, are often described as tech-savvy, self-conscious, up-to-date consumers. I do not see anything wrong with the image and I actually take it as another way of saying that we are forward-moving, fast-paced, and diverse. I am part of this Generation-Y demographic. Our possessions say it all. The phones, PSPs, Wiis, and portable music players are part of our everyday lives, and unsurprisingly, Toyota wants to be part of it too. The Scion brand is aimed at imitating these youthful techno-gadgets. Their cars strive to be unique and come ready with little charms like iPod jacks and six-speaker stereo systems. Scions are cute, fuel-efficient, simple to operate and quite funky. In fact, they are marketed as “Portable Boom Boxes.” Some driver’s education programs have taken note of Scion’s perceived appeal to the young population and now use fleets of Scions. But when I was at Swerve Drivers Ed, I hated the xB every second of the twelve hours that I had to endure in it.

The technological gadgets and computer games that the younger population spends money on have life spans of little more than two or three years. Unfortunately, the money that goes along with it is also short-lived. So when it comes to a large purchase such as a car, it needs to last. A driving machine that is going to accompany me for the next five to ten years will need to be extra-appealing and extra-timeless than are the usual throw-away appliances. I need to be able to look at the car long-term and love it with all my heart. So when I first faced the bloated chin of Scion’s flagship vehicle, the 2008 Scion xB, at Swerve Drivers Education, I cringed. The xB caught my eye, but not really in a good way. It seems as if its shape will grab attention for the first few days, then fade away like the techno-gadgets that it emulates. As much as I tried to convince myself that you can somehow improve the car’s appearance with aftermarket add-ons, I still couldn’t get over the blandness and the weirdness. I suddenly felt uncomfortable with Toyota saying that young people like me would be attracted to this car. It’s almost like the company saying that we youngsters don’t have expectations for timeless styling and proper design. I will admit that I tend to be a bit more opinionated and judgmental than most teens, and I don’t speak for the entire young population, but I expected much more from Scion. Continue Reading →

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2009 Kia Borrego EX V8 4WD Review

By on November 11, 2008 in Reviews

By Kevin Miller

11.11.2008

The title of this review might have you feeling a sense of déjà vu. The reason is that I had a Kia Borrego for review a few weeks ago, but after just two days with that V6 Borrego EX, a mechanical problem saw the vehicle taken away for service. Kia’s local fleet managers wanted me to be able to give the Borrego a fair shake, which led to me spending a week recently with the more-powerful Kia Borrego EX V8 4WD.

If you think of Kia as a manufacturer of small, inexpensive cars, your viewpoint is now officially outdated. The base MSRP is a reasonable $32995, which includes the 337 HP V8 mated to a 6-speed automatic transmission, four-wheel drive with electronic AUTO/HI/LOW range selection, ABS brakes, tow hitch, a full compliment of airbags (driver’s knees, front, front seat, and 3-row side curtain), stability control, parking assistance, dual-zone automatic climate control, power front seats with active head restraints, 50/50 split fold third-row seats, windshield de-icer, and a 10 year, 100,000 mile powertrain warranty.

However, the Borrego I drove had an as-equipped MSRP of $39,295. It was optioned up with chrome 18″ wheels for $750, Premium Package (sunroof, Infinity AM/FM/CD/MP3 audio system, rear AC with separate full controls, running boards) for $1800, Navigation System with voice control for $1500, Luxury Package (leather seat trim in first two rows, heated front seats, power tilt/telescoping steering column, two-position memory for driver’s seat, exterior mirrors, and steering column) for $1500, and $750 destination fee. The ambitious price tag is in the territory of storied nameplates from more-respected manufacturers, such as Ford Explorer Limited, Toyota 4Runner Limited, and Nissan Pathfinder LE. Continue Reading →

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Desperate Days For Chrysler in Britain – Two Cars for Price of One

By on November 10, 2008 in News

By Andy Bannister

11.10.2008

 

Suddenly, everyone in the UK is aware of the existence of the previously little-known Dodge Avenger. Unfortunately for Chrysler’s British importer, that’s because some dealers have apparently been so desperate to unload their stock of them that they have supplied a car sales website promoting a remarkable buy-one-get-one-free offer.

The sorry tale of the brand new half-price Avengers have been splashed all over the national press after the country’s Automobile Association described the offer as “almost unbelievable”, citing it as evidence of how much the economic slowdown is biting.

The Dodge brand only returned to the UK last year amid high hopes of growing sales with a sporty-but-tough image. All the investment in the nameplate seems headed straight down the plug hole, however, and owners of Dodge cars look set to see resale values plummet even further as the implications of the Avenger offer sink in.

The website in question, Broadspeed.com, has now sold out of its Avenger stock. Rumours suggest the dealers who supplied the cars did so without the consent of an angry Chrysler UK, which is currently expensively promoting another Dodge, the Journey, in prime-time TV commercials. Continue Reading →

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If Chrysler Is Sold Off In Pieces

By on November 9, 2008 in Editorials

Foreign buyers may be the future owners of Chrysler’s brands

By Brendan Moore

11.09.2008

Unless some bailout for the Detroit Three can be fashioned out of whole cloth soon, it looks like Chrysler may be sold piecemeal. Cerberus, the owner of Chrysler LLC, would much prefer to sell Chrysler whole, but with GM bowing out as a possible buyer because they can’t get federal aid to fund the deal, that doesn’t look very likely at this point.

And Cerberus wants to wake up from the bad dream that has been Chrysler these last six months – they want Chrysler to go away and get back to making money on something.

How might a break-up of Chrysler and subsequent sell-off of assets shake out?

Renault-Nissan is interested in the Dodge truck line. As usual, Mahindra and Mahindra of India is also mentioned as a possible buyer as well.

A Chinese company is rumored to be interested in the minivan line, but VW might be a safer bet as a buyer.

Hyundai is interested in the crown jewel of the Chrysler family, the Jeep line, and may also be interested in some other assets (i.e., production facilities) outside of what it takes to make Jeeps.

There are no interested buyers known at this time for the car line, although it’s quite possible a buyer may raise their hand for one or two of the car models.

Although Chrysler is privately owned and therefore does not report full financials, it is believed that they will run out of money before mid-year 2009 at their current rates of sales and operating costs. Chrysler’s sales have dropped 26% in 2008, and they now have only an 11% market share in the US. Their sales numbers continue to deteriorate each successive month. Since the forecast for all auto sales in 2009 is even worse than 2008, the chances that Chrysler’s situation will improve is extremely low.

Each day that passes, therefore, increases the chance that Chrysler will pull the trigger on a sale, no matter if the sale is for all of Chrysler or a single large piece. Chrysler has taken the required steps to be able to sell their lines individually, and I cannot see them delaying the inevitable for very much longer.

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