Archive | April, 2009

A Driving Trip: mTm-tuned VW GTI and Porsche GT3

By James Wong

04.17.2009

Birds are chirping. A cool chill descends upon the island and the sky is still pitch-black. Most people are still in bed enjoying the sleep-in of their early Saturday morning. However, two men with petrol in their blood met at the unholy hours of the morning to go for a blast up the infamous North-South Highway (NSH) of Malaysia. Sounds like fun? Read on.

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First up, let’s us introduce the cars. I will be driving the MkV Volkswagen GTI. The MkV GTI has had countless accolades since its inception in 2004, with many regarding it as the quintessential hot hatch. There’s no denying that this is an excellent all-rounder that competently combines practicality with sportiness. Its 2.0TFSI engine, when mated to the Direct Shift Gearbox (DSG, VW speak for a double-clutch gearbox), works seamlessly to put down all 200 horses down on the road with minimal lag.

What we have this morning, however, is slightly different.

On first inspection, the car looks just like a normal GTI with a Vortex body kit. Shod with 18” OEM VW Khartoum rims and a subtle body kit, the car looks tame and yet unmistakably sporty as it sits dormant in the garage. On closer observation, the car’s front brakes have been swapped for 4-pot AP Racing brakes and the rear exhausts have been fitted with stock-looking mTm pipes. This is no ordinary GTI however. Packing 272PS and 370Nm from its 2.0TFSI engine, this car’s claimed century sprint is claimed to be 6.3 seconds. It’ll also do a lot of wheel spins with a careless right foot. What gives it such a big power upgrade? Namely, the turboback mTm exhausts allow a freer flow of exhaust gases out, allowing the engine to run more efficiently. There is also a mTm Stage 2 ECU upgrade which releases the potential of the 2.0TFSI. Right, with so much talk, we’ll see later how it fares on the road.

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GM May Have to Drop GMC Brand

By Chris Haak

04.16.2009

gmc_logoBloomberg reported today that GM’s GMC brand, which sells trucks and crossovers, may be on the chopping block, along with the previously-confirmed-to-be-on-death-row Hummer, Saturn, and Saab.  GM’s most recent restructuring plan called for a focus on Chevrolet, Cadillac, and Buick as “core brands,” with GMC and Pontiac to be retained, but Pontiac becoming a “niche brand” with only a couple of models.

GMC is GM’s second bestselling brand, behind Chevrolet (albeit a distant second, with just 20% of Chevrolet’s sales).  In 2008, GM’s divisional sales played out like this:

Buick:  137,197
Cadillac:  161,159
Chevrolet:  1,790,519
     Chevrolet trucks:  979,286
     Chevrolet cars:  811,233
GMC trucks:  361,739
Hummer:  27,485
Pontiac:  246,659
Saab:  21,368
Saturn:  188,004

TOTAL:  2,914,819

It’s easy to see why it makes sense to kill Hummer and Saab (48,853 sales combined, while Chevrolet sold 54,058 Suburbans alone).  Cutting their losses on Saturn also makes sense, because that’s the third-smallest sales volume in the lineup and has nearly all standalone dealers and a more flexible franchise agreement that makes it easier to terminate the brand.  On top of that, Saturn has zero completely unique products.  Every product that Saturn sells is available elsewhere at another GM brand: Continue Reading →

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Is the smart fortwo Doomed in the US?

By Chris Haak

04.16.2009

2008-smart-fortwos-intersectionDaimler AG’s minicar subsidiary, smart, has been selling its minuscule two-seat vehicles to style-conscious, city-dwelling Americans for a couple of years and has been reasonably successful.  However, much of that success is probably attributable to the car’s shockingly small stature (which makes it more of a fashion accessory than a viable automobile) and high fuel prices.  Folks assume that such a tiny, three-cylinder car surely must be extremely fuel efficient.  In reality, it isn’t nearly as efficient as you’d expect it to be.

The EPA’s fueleconomy.gov website lists six models with highway fuel economy figures above 40 mpg, although two of the six are two versions of the same car (the Jetta SportWagen/sedan (41 mpg highway) and the smart fortwo coupe/convertible (41 mpg highway)).  The other options are the Toyota Prius (45 mpg highway) and the Honda Civic Hybrid (45 mpg highway).  Not yet appearing on the EPA’s site is the already-on-sale 2010 Honda Insight, which is rated at 43 mpg on the highway.

Highway fuel economy numbers are relatively easy to achieve via gearing and aerodynamics.  The real trick is the city fuel economy, and that’s where weight and drivetrain efficiency really play a part.  The only vehicle – aside from the 2010 Insight (40 mpg city) – rated over 40 mpg in the city cycle is the Prius (48 mpg city).  The Honda Civic Hybrid is the only vehicle rated over 35 mpg city (40 mpg).  Lower the bar a little further to those rated over 30 mpg city, and the list expands to include the Altima Hybrid (35 mpg city), Escape/Tribute/Mariner (FWD) Hybrid trio (34 mpg city), smart fortwo coupe/convertible (33 mpg city), and the Toyota Camry Hybrid (also 33 mpg city).  The 2010 Ford Fusion Hybrid is rated at 41 city/36 highway. Continue Reading →

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Potential Owner of Saturn Will Sell Foreign Brands

By Brendan Moore

04.16.2009

saturn-logo-smallYou have probably read by now that Saturn has an interested buyer named Telesto Ventures (sounds like a wireless phone company, doesn’t it?) who made their intentions known in the last 48 hours.

What is most interesting from my point of view is that Telesto states that if they do acquire Saturn, their plan is to sell GM-sourced vehicles until 2011, and then sell mostly foreign brands after that.

What sort of foreign brands will Saturn sell in this scenario? Will it be bargain-basement cars from China or India? Will it be mid-market offerings from companies like Peugeot, who has the wonderful 308? Or, in the same vein, perhaps they’ll sell the Renault Logan, a sales leader everywhere it is currently sold? Or, perhaps they’ll sell some re-badged Japanese or Korean cars that are not currently sold in the States. Then again, they could sell re-badged versions of cars already sold in the US by someone else – the operating premise here would be, “buy it from us, we’ll treat you better before and after the sale because we’re Saturn”. Perhaps they’ll sell a combination of all of those possible choices, in addition to offering some electric cars (Subaru R1e, anyone?).

Really, all of the possibilities make one’s head spin.

Saturn has 384 retail locations (dealerships) in the US as I am typing this; undoubtedly that number will be smaller by the end of this year. But, still, it’s a nice little retail network that is probably about the right size for niche products like the ones I think Saturn intends to sell.

GM, for their part, says that Telesto’s interest is genuine and legitimate, and that they are moving forward with their analysis of Telesto’s offer.

Telesto is not known to have any auto experience at their company, but, there are a lot of auto executives out of work these days – it shouldn’t be too hard to find some hired guns to help them through the first couple of years of planning. They’ll have a cushion until the GM products go away, so it wouldn’t be that difficult to come up with a plan in that timeframe. Certification of the candidate vehicles will be the hard part.

It’s an interesting plan. If they succeed, then American consumers will have even more choices than they do currently.

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Subaru R1e EV

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Is Hyundai’s Formula the Recipe for US Sales Success?

By Chris Haak

4.16.2009

2009-hyundai-sonataThe CarGurus Blog proposed this week that if you want to succeed in the auto industry, you should do try copying Hyundai.  Their post is focused mainly on the Hyundai Assurance program launched earlier in the year that allows buyers to walk away from their new car purchase for a certain period of time if they should lose their job.  Hyundai has credited this program with increasing showroom traffic and sales that have been up or at least flat relative to the corresponding period in 2008 – and that in an of itself is a big win for the Korean company.

At first glance, Hyundai’s and Kia’s US sales figures are better in 2009 than they are for nearly any competitor, including Subaru, which has also managed to stave off the depression in the auto industry for the time being.  However, Automotive Newshad an article this week about how part of Hyundai/Kia’s sales success in the early part of the year is due to them dumping greater percentages of their vehicles into fleet sales.  This begs the question:  are Hyundai/Kia really doing smart, great things, or are they just beneficiaries of the timing of certain external events?

My belief is that Honda and Toyota can offer a shorter warranty than Hyundai because they have a rock-solid reputation for reliability.  Personally, I’d feel more comfortable buying a Toyota with a 60,000 mile powertrain warranty than a Hyundai with a 100,000 mile warranty.  Manufacturers tend to spin long warranties as “standing behind their products,” but what they are omitting from the message is, of course, that they feel a need to stand behind their products in that way in the first place.  Long warranties are nothing more than a perception-battling tool for companies to use.  Are Chryslers with a “lifetime powertrain warranty” (to the original owner) built better than a Honda with a far shorter warranty?  Almost certainly not, but Chrysler felt that in order to combat its reputation for substandard quality, a statement like a lifetime powertrain warranty would resonate with consumers (it’s unclear whether it actually is doing so at this point, based on monthly sales results). Continue Reading →

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Fiat Says It Will Walk Away From Chrysler Unless Their Terms Are Met

By Brendan Moore

04.15.2009

fiat-group-logo-smallSergio Marchionne, the CEO of Fiat, told reporters today that Fiat will walk away from their non-binding agreement to take an initial 20% stake in Chrysler LLC and share their small car technology with the American company if their terms are not met.

He was referring specifically to Fiat’s demands that the union give greater concessions than they have agreed to so far.

Chrysler has so far refused comment on Marchionne’s statement other than to say that they are working towards resolution of the Chrysler-Fiat deal by the federal government’s April 30 deadline for restructuring, which is a mere 15 days away at this time. Chrysler has gotten $4 billion USD in government aid so far, and April 30 is the drop-dead date that government has mandated as the last day for Chrysler to do a deal with Fiat. The Obama administration has said it will not give Chrysler any more money after April 30 if the Fiat deal doesn’t happen, and if the government cuts off funding, Chrysler will almost certainly go out of business (through bankruptcy) immediately. Chrysler’s assets would then be sold piecemeal as part of the bankruptcy process.

It is difficult to see how Chrysler can influence the CAW (Canadian Auto Workers) and the UAW (United Auto Workers) any more than they already have; any further level of concessions will have to come from the unions’ belief that it’s going to be Fiat’s terms or nothing.

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Up until now, the biggest problem was believed to be Chrysler’s creditors (banks and hedge funds) and the $6.9 billion USD that Chrysler owes those creditors, and, the US Treasury’s auto task force’s insistence that the debt be settled for 15 cents on the dollar. The creditors are not going for it.

Observers, as well as some politicians that represent regions where the auto industry is a major employer, have stated that they believe that Marchionne’s statement is a negotiating tactic. Well, perhaps.

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Steve Saleen’s New Performance Cars

saleen-3

By Brendan Moore

04.14.2009

While at the New York Auto Show, I was able to speak to Steve Saleen, the famous specialty car manufacturer. First as a professional race driver, and then as an innovative businessman in the auto performance industry, Saleen is well known as the founder of numerous Steve Saleen Brands including Saleen Autosport in 1983, Saleen Productions in 1993, Saleen Speedlab in 1997, Saleen Performance in 1999, Saleen, Inc. in 2001 and now SMS Limited in 2008.

Steve Saleen has had an eventful 24 months, as he was involved in a deal to distribute Chinese-made pickup trucks and SUVs through a company named Chamco that fell apart in an ugly way. He started a new company after the break-down of the distribution deal, focused on the thing he loves most – making mass-market cars into very attractive high-performance machines.

More on the Chamco debacle from Autosavant in 2008:

“Chamco Auto is done; stick a fork in them. In addition to all of its other troubles, the wanna-be importer just lost its Chinese supplier of vehicles. Chinese automaker Hebei Zhongxing Automobile Co. was supposed to deliver large numbers of an inexpensive SUV and pickup truck to Chamco for sale in the US, but Chamco has been torn asunder by infighting at the company, lawsuits and counter-lawsuits, and last, but not least, the headlong flight of more than a dozen auto executives from the company, including Steve Saleen. Chamco was shut down by order of a New Jersey Superior Court judge, and control of the company was remanded to a court-appointed trustee in April of this year. Chinese manufacturer Hebei Zhongxing Automobile Co. said, that’s it, we’ve had enough, and we’re out of here. Hebei Zhongxing still hopes to sell their vehicles in the US, but it won’t be through Chamco, that’s for sure. Although they may want to rethink that SUV/pickup lineup. Steve Saleen has already started SMS, an automotive performance company that will enhance many makes, not just Ford models as Saleen performance previously did. And what of the 37 dealers that paid an average of $250,000 USD for their Chamco dealer franchise? They are out of luck.”

So, my first question to Steve was, “What is the current status of the Chamco litigation?”

His answer was that the whole issue is still in the courts, it is moving towards resolution, and that he really couldn’t divulge anything more that that as it is still an ongoing legal matter. He did, however, state that his relationship with Hebei Zhongxing is excellent, and that the problem was with the now-bankrupt Chamco.

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Quick Drive: 2008 Volvo C70

By Kevin Miller

04.13.2009
12932_2_1As somebody who has owned Saab and Volvo cars for over a decade, I have become accustomed to both marques’ accommodating dealers who make service loaner vehicles available for all-day (and longer) service appointments. I’ve driven countless entry-level 9-3 and S60 sedans during service appointments. That being said, I was surprised to get a Volvo C70 hard-top convertible as a service loaner this week when I took my five-year-old V70 wagon in for some attention. When the V70 ended up staying overnight, I had the opportunity to spend some quality time behind the wheel of the C70.

All C70s in the US are equipped with a turbocharged five-cylinder engine making 227 HP, and this service loaner was predictably equipped with an automatic transmission, in this case Volvo’s Geartronic with five forward ratios and a manual shifting gate (but no steering wheel mounted paddles nor a sport mode). Setting away from the dealership in work attire, my size 13 dress shoes became repeatedly trapped under the brake pedal when I attempted to lift off of the accelerator. I have experienced the closely-spaced pedals before in Volvo’s related S40 and V50, I just find the pedals to be too close together. Continue Reading →

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The Shape of Things Yet to Come

By J. S. Smith

04.13.2009

bankruptcyWhat happens if GM goes bankrupt? The question is no longer all that theoretical. Wilbur L. Ross gives GM a 50% chance of entering bankruptcy court. Moody’s put the odds at an even more sobering 70% back in February, before President Obama’s issued a 60-day drop-dead date on April 1. And 76% of the American people don’t care if it happens.

News reports leaking out of the RenCen give an idea of what GM would look like. According to CNN, the idea is to split GM in two, creating a “good GM” and a “bad GM.” Good GM would, not surprisingly, be composed of Chevrolet and Cadillac, teamed with the stronger overseas units. Bad GM would comprise Saturn, Saab, Hummer, presumably joined with the weaker overseas units, and saddled with the older, inefficient factories and crushing debt obligations of the parent.

The idea would be for Good GM to be sold to a new entity (GM Plus?) and quickly emerge from bankruptcy. Meanwhile, Bad GM would languish in bankruptcy court, as bondholders and the pension plan take massive hits.

The pension plan would likely dump its obligations onto the Pension Benefit Guarantee Corporation (PBGC). According to Bloomberg, “As many as half of GM’s 670,000 pension-plan participants might see their benefits trimmed.” In the interests of full disclosure, those getting “trimmed” would include four members of this author’s family. This could take blue-collar pensions down from a livable $36,000 per year down to a less palatable $18,000 to $21,000 per year. Continue Reading →

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The Mystique of Italian Cars

maserati-granturismo

By James Wong

04.12.2008

Passion.

It’s a rare thing these days, with every car manufacturer claiming a full-blooded engineering marvel every time they release their latest sports car. How many of the cars in the world today actually tugs at our heartstrings and make us crumble in joy whenever we see or hear one pass by us on the street? And where do these cars always come from?

Undeniably, Italy is one country that will produce automobiles that no any other country can ever replicate – and, although it’s a personal opinion, I do believe that they produce the most passionate cars in the world. Just articulating their names to yourself makes you smile, having spoken one of the most beautiful names you can ever give to a brand. Maserati. Ferrari. Pagani. Lamborghini. And their cars itself, each and every one revered by car enthusiasts worldwide, are no empty vessels either. They are true driver’s cars, built for the winding B-roads and the Autostrada that Italy is so famous for. So, this article hopes to explore why Italian cars hold a special place in every one of our petrolhead hearts, and why they are probably going to be on bedroom posters of young boys for a long time to come.

2007-pagani-zonda-fItalian cars are no stranger to history. Dating back to as early as the 1920s, Maserati has been making racing cars to compete in races that included illustrious competitors like Auto Union (which eventually became Audi) and Mercedes. Ferrari, a name synonymous with the F1 Grand Prix, is still a force to be reckoned with in the racing scene, having taken 1st place in the Constructor’s Championship for both 2007 and 2008. In the 1960s, Lamborghini built a car called the Miura which, up till today, is still looking as good as ever. Pagani, although a relatively new company set up in the 1990s, restored whatever lost faith people had in Italian cars by building outrageously opulent, gorgeous, manic cars that did not live by the constraints of conformity and tastes of the bourgeoisie. As one can plainly see, the reputation of Italian cars did not come out of nowhere – their colourful and deep history serves in some way or another to contribute to the appeal of Italian cars.

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